She will be considered a business in the IRS eyes. You do not have to carry on regular full-time business activities to be considered self-employed. She received non-employee compensation and will need to file a Schedule C for Business Income and Expenses and pay Self-Employment tax on this income.
To file a Schedule C, here are the steps:
- Sign in to your account and select Pick up where you left off
- At the right upper corner, in the search box, type in schedule C and Enter
- Select Jump to schedule C
- Follow prompts, you might be prompted to an upgrade if you have expenses
If you are claiming her on your return as a dependent, but sure to mark on her return that she is being claimed as a dependent.
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