I missed posting this. Here's some more info...
Here is Schedule C to see what you are filling out
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
You are considered self employed and have to fill out a schedule C for business income. You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk. Yes it is a qualified business.
She will also need to enter a business code. Schedule C line B Business Code is a 6 digit number for your activity. Here are the IRS instructions for Schedule C. Business codes start on page 18. If you can't find a code that applies, you can enter 999999.
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
