Because your daughter received a 1099, she has self-employment income and is paying self-employment tax. You will see this amount reflected on line 15 of Form 1040. This is not an income tax, it is Social Security and Medicare Tax.
A self-employed individual is also able to deduct one half of the self-employment taxes as an adjustment to compensate for the fact that a self-employed individual is paying both sides of the tax, compared with an employee that only pays 7.65%.
There is also a 20% reduction in the income related to the Qualified Business Income Deduction.
It seems as though once these two items are taken into account (TurboTax will usually automatically take these), the $87 sounds accurate.
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