@LocHa
NO! your daughter's income belongs on her tax return! it will list HER social security number. However, you still claim her as she is a student.
On her tax return, she has to check the box indicating she CAN BE claimed by someone else. Since she is receiving a 1099-NEC statement (i.e. she was not an employee), she is required to file because her income exceeds $400.
And I just reread your post....you are using terms interchangeably which can create confusion. Was she an employee or a 1099 contractor. If the employer withheld the social security and medicare tax, she was an employee. In that case, if no federal or state tax was withheld, she has no requirement to file until her income exceeds $13,850.
There is no "income tax" to be paid.
But there is "Self Employment tax" of 15.3% to be paid. That is the social security and medicarea tax that would had been withheld had she been a W-2 employee.
The way it works for a W-2 employee is the federal government expects to receive 7.65% from the employee and a like amount from the employer. The employer can deduct his portion as a business expense.
For a 1099-NEC contractor, it works simpliar, but since there is no separate employer, your daughter pays the entire 7.65% times 2 but then can deduct half from her income when calculating her income tax, but there won't be any income tax in this case so subtracting half doesn't do anything.
Separately, be sure to take advantage of the College tax credits (AOTC or LLC) based on form 1098-T that YOUR DAUGHTER receives. But it is you that needs that form to create the credit. It is confusing and I suspect many fail to take advantage of the credit.
