Tiny limits like 20 KB appear on older exam, visa and government sign-up forms, which often want a passport-style photo or a scanned signature.
Such files are small in dimensions as well as weight. The tool lowers JPG quality first and then the pixel size until the result is under 20 KB, so a face photo usually ends up around 300 pixels wide.
Forms use many different caps. The related pages cover the neighbouring sizes, and the FileHost.net Image Compressor gives manual control of quality and width.