I am 74 on social security and received $3000 for consulting (1099) in 2020. Why would I owe $424 Federal Income tax on this small amount?

[mmrkelly46]

I thought the income amount to start being taxed was like $25,000.

[xmasbaby0]

Because you have to pay self-employment tax for the consulting work.    You pay SE tax for even as little as $400 of self-employment work.

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

[VolvoGirl]

You probably don't owe any regular income tax on your income but you owe self employment tax on it.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. 

SE tax is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.