She must file her own tax return. This income was earned by her and is not part of your income.
Her self employment income requires her to file (Form 1099-NEC) to show any expenses that she might have that will reduce the gross income. As indicated by @LeticiaF1 enter the 1099-C using the link provided: How do I enter a 1099-C?
Enter your self employment income and expenses by using the link below. Expenses will also be available for her to use if she has any.
You must start a new account for her if you are using TurboTax Online (only one return per account). You can add another return (up to 5) if you are using TurboTax Desktop.
@Loladoby
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