Do not enter your daughters 1099 MISC form on your return, but have it recorded on a separate tax return for her income. She is required to file a return since she earned $400 or more in self-employment income and self-employment tax will be due on it. Her return can be marked that she is being claimed as a dependent on someone else's return.
On her return, this is where the 1099 MISC income is entered:
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