What is the $600 rule on Cash App?

The $600 rule usually refers to tax reporting on payment platforms, not a flat tax on all payments. If Cash App is used for business-related payments, the platform may need to report qualifying activity depending on the current IRS rules. Personal payments, such as splitting rent with a roommate or paying back a friend, are generally not taxable. The key issue is whether the money is income for goods or services. People often misunderstand the rule as applying to every transfer, which is not true. If you receive money through Cash App for work or sales, keep proper records and report it if required. The app is just the payment channel; tax treatment depends on the transaction purpose.