If you "go the SS-8 route", be advised she still has to pay the employee share of FICA tax ( a little over half of that $300) on form 8919.
There is a way to avoid the $300.
But, The IRS considers anything on a 1099-NEC to be self employment income. TurboTax (TT) aggressively steers you in that direction. If you try reporting 1099-NEC income as anything else, your chances of hearing from the IRS are high.
After entering your 1099-NEC, you will encounter a screen titled "Does one of these uncommon situations apply". Check the box "This is not money earned as an employee or self employed individual; it is from sporadic activity or hobby".
Checking that box will put the income on line 8 of Schedule 1 as "other income" .
Apparently this is legal, the key being that it was a one time gig. Sloan v. Commissioner [Dec. 44,879(M)], T.C. Memo. 1988-294.
See http://www.journalofaccountancy.com/Issues/2009/Jul/20091639.htm
The ability of a parent to report their dependent's income, on their return, is more limited than just earned income. If her only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814.
