When your daughter was working and getting paid with a Form 1099-MISC, she was being considered an independent contractor for the company that was paying her for her services. In the eyes of the IRS, she was self-employed at that time and running her own business to provide her services as an independent contractor.
The error conditions in TurboTax are related to missing information on Schedule C, which reports self-employment income and expenses.
For a situation like you described, the 'cash' method of accounting would be used; qualified business income would be 'yes'; material participation would be 'yes'; business name could be left blank, but business address would be your daughter's own address; required to file 1099 would be 'no'; and principal business code could be '999999'.
It may be easiest to go to the Schedule C section of the return to go through the screen setting up the business to enter the information requested above instead of entering it through the error check. That way you will see the additional information on the screen explaining what and why you are entering this information.
@planphore
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