The 1099-NEC should be reported on Schedule C. The school did not consider her an employee for the summer internship. Instead, they considered her an independent contractor. This doesn't mean she has a business, it simply means she performed a service for someone but was not their employee.
Whether or not she considered herself self-employed does not play a role in the determination of how the income is taxed.
If this "job" lasted for the summer, that would not be a sporadic activity. It is also not a hobby.
Was this the college she attended or was it another college? Did she work with the intention of making money in addition to getting experience?
If her internship would be at a stand alone veterinary clinic working as a tech because she is studying veterinary medicine, and they did not consider her an employee, then this would be income as an independent contractor subject to self-employment tax.
On the other hand, if she worked at the vet clinic at Cornell, where she attends college, as a pre-requisite for graduation, this could then be entered as other income with a description of Taxable Stipend. If this is the case, you can enter it by selecting
- Income
- Show More next to Less Common Income
- Start next to Misc Income
- Start next to Other Reportable Income
- Enter the income as Other Taxable Income with a description of Taxable Stipend from XXX college and the Amount
This will enter the income on line z of her Schedule 1 with a description which will then flow to line 8 of the 1040. It will be taxed as ordinary income instead of self-employed income.
The type of work she did, why she did it and who she did it for does determine if it is self-employment or a taxable stipend/scholarship. If it does not fall into the category of scholarship/taxable stipend, then it does need to be reported on Schedule C.
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