Bookmark and Share [ [link removed] ]

IRS.gov Banner

IRS Newswire




January 16, 2026





Issue Number:  IR-2026-09

Inside This Issue
________________________________________________________________________

*Treasury, IRS: Supplemental basic allowance for housing payments to members of the military are not taxable   *

IR-2026-09, Jan. 16, 2026

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today confirmed that supplemental basic allowance for housing payments made to members of the uniformed services in December 2025 are not to be included in income by those who received the payments; they are not taxable.

In the One, Big, Beautiful Bill enacted last July, Congress appropriated $2.9 billion to supplement the basic allowance for housing payable to members of the uniformed services. In December, President Donald J. Trump announced that 1,450,000 military service members would receive a special “Warrior Dividend” before Christmas.

The resulting one-time supplemental payments of $1,776 made primarily to active-duty members of the uniformed services in the pay grades of O-6 and below and eligible Reserve Component members as of Nov. 30, 2025, of the Army, Air Force, Navy, Marine Corps and Space Force were funded by this appropriation. 

Federal tax law specifically excludes from gross income a “qualified military benefit.”  The basic allowance for housing payments are qualified military benefits and, therefore, are not taxable.

 

Back to Top [ #Fifteenth ]

FaceBook Logo [ [link removed] ]  YouTube Logo [ [link removed] ]  Instagram Logo [ [link removed] ]  Twitter Logo [ [link removed] ]  LinkedIn Logo [ [link removed] ]

________________________________________________________________________

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe [ [link removed] ].

This message was distributed automatically from the mailing list IRS Newswire. *Please Do Not Reply To This Message.*





News Essentials

What's Hot [ [link removed] ]

News Releases [ [link removed] ]

IRS - The Basics [ [link removed] ]

IRS Guidance [ [link removed] ]

Media Contacts [ [link removed] ]

Facts & Figures [ [link removed] ]

Around The Nation [ [link removed] ]

e-News Subscriptions [ [link removed] ]

________________________________________________________________________

The Newsroom Topics

Multimedia Center [ [link removed] ]

Noticias en Español [ [link removed] ]

Radio PSAs [ [link removed] ]

Tax Scams [ [link removed] ]

The Tax Gap [ [link removed] ]

Fact Sheets [ [link removed] ]

IRS Tax Tips [ [link removed] ]

Armed Forces [ [link removed] ]

Latest News Home [ [link removed] ]

________________________________________________________________________

IRS Resources

Contact My Local Office [ [link removed] ]

Filing Options [ [link removed] ]

Forms & Instructions [ [link removed] ]

Frequently Asked Questions [ [link removed] ]

News [ [link removed] ]

Taxpayer Advocate [ [link removed] ]

Where to File [ [link removed] ]

IRS Social Media [ [link removed] ]

________________________________________________________________________







/*start reset css*/ div { line-height: 1; } body, table, td, p, a, li, blockquote { -webkit-text-size-adjust: 100%; -ms-text-size-adjust: 100%; } body { -webkit-text-size-adjust: none; -ms-text-size-adjust: none; } table { border-spacing: 0; } table, td { mso-table-lspace: 0pt; mso-table-rspace: 0pt; } img { -ms-interpolation-mode: bicubic; } body { margin: 0; padding: 0; } img { border: none !important; height: auto; line-height: 1; outline: none; text-decoration: none; } table td { border-collapse: collapse !important; } .preheader { display: none !important; visibility: hidden; opacity: 0; color: transparent; height: 0; width: 0; } /*end reset css*/ a[x-apple-data-detectors] { color: inherit !important; text-decoration: none !important; font-size: inherit !important; font-family: inherit !important; font-weight: inherit !important; line-height: inherit !important; } /* Sets the line height in everything but Outlook */ table#yahoo body, table#yahoo p, table#yahoo .gd_p, table#yahoo p span, table#yahoo li, table#yahoo li span { line-height: 1.4; } /* outlook.com line-height control */ .ExternalClass p, .ExternalClass span, .ExternalClass font, .ExternalClass td {line-height: 100%} table#yahoo .govd_template_image { max-width: 100% !important; max-width:100%; } table#yahoo .govd_template_image, table#yahoo .govd_template_image img { height:auto !important; height:auto; } /* Fixed Outlookdotcom and Outlook360 not supporting Hspace - HT 2-12-2020 */ table#yahoo .gd_combo_table img {margin-left:7px; margin-right:7px;} table#yahoo .gd_combo_table td.gd_combo_image_cell img, table#yahoo .gd_combo_table div.govd_image_display img {margin-left:0px; margin-right:0px;} body { font-family: arial; } p { font-size: 12px; } li { font-size: 12px; } h2 { font-size: 24px; font-style: italic;} html body#shared_bulletin #page .account_banner { display: none !important; } @media only screen and (max-device-width: 480px) { table#yahoo, table#yahoo table { position: relative; } table#yahoo .govd_header { max-width: 480px !important; } table#yahoo .govd_hr img, table#yahoo .govd_hr_inner img { display:none !important; } table#yahoo .govd_content_container .govd_image_display { margin-left:0 !important; } table#yahoo .container-fill, table.gd_tbl_wrap, table.gd_tbl_wrap table { max-width: 480px !important; } .main-table, .mobile-footer, .mobile-tagline, table.gd_tbl_wrap, table.gd_tbl_wrap table { width:100% !important; min-width:100% !important; max-width:480px !important; } table#yahoo .tablecell, .tablecell { width:100% !important; display: block !important; max-width:100% !important; min-width: 100% !important; } table#yahoo #main-body .govd_hr {background:transparent none !important;} .mobile-hide {display:none !important;} .mobile-padding {padding:0 !important;} .mobile-columns {padding:10px 20px !important;} }

________________________________________________________________________

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need your email address to log in. If you have questions or problems with the subscription service, visit subscriberhelp.govdelivery.com [ [link removed] ].

This service is provided to you at no charge by the Internal Revenue Service (IRS) [ [link removed] ].


body .abe-column-block {min-height: 5px;} ________________________________________________________________________

This email was sent to [email protected] by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington, D.C. 20535 GovDelivery logo [ [link removed] ]
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;}