Business and economics |

Taxpayer asks:
I left my job as an editor at a media company, but continue to do some freelance work for them. When I submitted an invoice, I was told that for tax purposes I couldn’t be paid by them as an independent contractor in the same year that I was an employee. This means those invoices have 45% taken out for withholding taxes, which I assume means they were treated like bonus checks. But they weren’t bonuses, they were my income, and now come tax time, I’m not sure how to account for this on my Schedule C. I don’t know anyone else who has run into this problem–is their policy legitimate or are they just trying to make my life difficult?

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