Your daughter may need to report the income on Schedule C.
The owner of the business has paid your daughter as an independent contractor. Whether she is truly an employee or not, the IRS presumes that 1099-NEC income is self-employment income that is subject to self-employment income computed on Schedule SE as well as income tax computed on IRS Form 1040.
This TurboTax Help states:
Independent contractors are not employees, so if this is your classification, your company doesn't pay for benefits or withhold taxes from your income. Your employer will report your income to you and to the IRS on a Form 1099-NEC, and you're required to report it on your tax return.
