The IRS and the Treasury Department confirmed that one-time supplemental housing payments made to uniformed service members in December 2025 are excluded from income.
Recipients do not owe federal income tax on these amounts.
What Payments Are Covered
Congress appropriated $2.9 billion in July 2025 to supplement the basic housing allowance.
In December 2025, the President announced a one-time “Warrior Dividend.”
About 1.45 million service members received payments before Christmas.
The standard payment amount was $1,776.
Payments went primarily to active-duty members in pay grades O-6 and below.
Eligible Reserve Component members qualified if they were serving as of Nov. 30, 2025.
Covered branches include the Army, Air Force, Navy, Marine Corps, and Space Force.
Legal Basis
Federal tax law excludes “qualified military benefits” from gross income.
The basic housing allowance qualifies as a military benefit under this rule.
The supplemental payments were treated as part of the housing allowance.
As …
