Her unemployment would count toward her total income for the year. How old is she? It sounds like she should probably be claiming herself. Its pretty straightforward if she pays for most of her own expenses then she should claim herself. If she is off legal age, if she claims herself she can claim the stimulus payments which I'm sure you probably didn't receive depending on her age and her tax liability will be lower. Is she in college? I would run the number both ways with you claiming her and not and also run her numbers filing independent versus not and see the best way to file.
