From your description, the IRS would consider this as Self-Employment income.
You would have a difficult time arguing that this was a hobby.
She will need to include Schedule C to report that income.
Yes, besides INCOME tax, she will also pay FICA (social security) tax on the profit. Yes, she pays both halves of the FICA tax, but does get a credit for the business half she pays. The Software calculates all that.
She can deduct expenses, such as supplies and internet service. Claim the portion of internet expenses relating to her business use.
The business will continue if she was paid in 2023 as well as 2022.
The income will be reported on your NY state return.
Best wishes for your father.
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