A research stipend can be reported as earned income. Technically, she does not need to file because she has less than $12,550 or earned income. Unfortunately, income on a 1099-Misc is not considered as earned income. The filing requirement, for a dependent is only $1100 when she has unearned income. The school should not have reported the income on a 1099-Misc. So there is a chance you will hear from the IRS if she doesn't file. You should be able to explain it away if that happens.
But, to head that off, you may want to have her file a return. Follow JamesG1's instructions for entering and that will put the income on line 1 of form 1040, as earned income. You may want to paper file so that you can attach a copy of the 1099 and a statement explaining the circumstances (this is optional). You can't e-file, with attachments. From the IRS instructions for form 1099-Misc: Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly.
