The new $600 rule on Venmo, +1-(888)-510-9678 implemented by the IRS in 2022, requires payment platforms like Venmo, PayPal, and Cash App to report user transactions to the IRS if they exceed $600 in a calendar year. This rule applies specifically to payments for goods or services, +1-(888)-510-9678 not personal transfers (like gifts or splitting dinner). Previously, the reporting threshold was much higher—$20,000 and 200 transactions.
Under the new rule, if your total payments for goods or services reach $600 or more, Venmo will send you a 1099-K form, which details the amount you earned. This form must be included when filing taxes, as it’s considered income. It’s important to note that this rule only applies to commercial transactions, +1-(888)-510-9678 not casual or personal payments between friends.
