Did you get a 1099 from Paypal stating what you were paid in total? $3200 seems high for making $24000 dollars. I do my daughters taxes and she is makes about the same amount and only $800 is withheld. On the schedule C you can take a lot of deductions to reduce the taxable income. Which it sounds like you did, getting the taxable income to $5400. From the Tables or websites on Tax brackets it looks like your tax rate is 12% , which is 53400 x 12--> $648.
