Did the IRS really announce a ‘new tax benefit’ for 2026? Here's what to know

As US tax filing starts Jan 26, claims of new IRS tax benefits are circulating, but they’re misleading, not new, and don’t apply to most taxpayers.

With the season of tax filing set to kick off in the US, a lot of buzz is doing the rounds about new tax benefits, especially in the wake of Trump's rejig of the tax regime. The tax filing season in the US begins on officially on Monday, January 26.

A view of the Internal Revenue Service building in Washington DC. (REUTERS)

One recent claim that is causing quite a confusion is about the Internal Revenue Service (IRS) announcing new tax benefits for taxpayers this year. However, the information is partly misleading, as it is not new information, for starters. And secondly, it does not apply to most taxpayers.

IRS New Tax Benefit: What Is It? Who Is Eligible?

The IRS, on January 16, put out a notice on its website confirming that the $1,776 'Warrior Dividend' payments to active-duty US Army troops that President Trump announced earlier in December as a Christmas bonus will not be taxable. This is not new information, pas se, as Trump had confirmed at the time of the announcement that the payment would be tax-free.

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

Thus, as is clear from the IRS notice, the "1,450,000 military service members" from the "pay grades of 0-6 and below and eligible Reserve Component members as of Nov. 30, 2025, of the Army, Air Force, Navy, Marine Corps and Space Force" got this payment. As a result, these servicemen will be eligible for the relief in the 2025-26 tax year.

Note: For accurate and up-to-date information on federal taxes, the IRS website is the official and most credible source. Taxpayers should rely on IRS.gov for verified guidance, deadlines, and policy updates.