You enter her as your dependent child and indicate that she lived with you for the Whole Year. You do not enter her earned income from work on your tax return.
She does not need to file a tax return since her wages were under $13,850 if her income was reported on a W-2. If her income was from self-employment and she received a Form 1099-NEC or cash then she is required to file a tax return and use Schedule C for the self-employment income and expenses.
If she does file a tax return make sure that she indicates on her tax return that she can be claimed as a dependent.
To be a Qualifying Child -
1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.
3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.
4. The child must not have provided more than half of his or her own support for the year.
5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.
7. The child must be younger than you unless disabled.
