What is the new $600 rule on Venmo?

The $600 rule usually refers to IRS reporting rules for payment apps, not a new tax on ordinary personal payments. The idea is that payment platforms may need to report certain business transactions when activity reaches threshold amounts, but personal transfers between friends and family are generally not taxable. The actual rules depend on how the money is classified and the current IRS guidance. Many people misunderstand this as meaning all Venmo transfers over $600 are taxed, which is not correct. If you receive money for goods or services, you may owe taxes regardless of the app used. It is smart to keep records and separate personal payments from business income.