The IRS has published a news release stating that supplemental basic allowance for housing payments made to uniformed services members in December 2025 are not taxable and should not be included in income. The one-time payments of $1,776 were distributed to military service members in pay grades O-6 and below as part of President Trump’s “Warrior Dividend.” These payments qualify as excluded “qualified military benefits” under federal tax law. [IR-2026-09 (Jan. 16, 2026)]
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