Thank you Opus 17.
Her income feels like "earned income", not "unearned income", since she earned it by working in their laboratory. The university where she had the summer internship was not the university where she goes to school. She goes to school in another city, but came home for the summer and worked at a local one. The (summer internship) university classified all $3,500 of it as Box 3 "Other Income" on a 1099-Misc.
