You enter the interest in TurboTax the same as a 1099-INT from a bank. For the payer's name enter Internal Revenue Service, and enter the amount of interest in box 1. That's all you have to enter.
To enter it, type 1099-int in the Search box, then click the link that says "Jump to 1099-int."
Your daughter should enter her interest on her own tax return, the same way.
