You'll use the amount in Box 1 on your Form(s) 1099-NEC to report your self-employment income. Instead of putting this information directly on Form 1040, you'll report it on Schedule C.
She will most likely, only pay social security on the net income and is still entitled to the $12,500 standard deduction. She will not have any taxable income due to the standard deduction but social security is due for self employment income.
However, if you had issued a W-2 to your daughter, Your child can earn a maximum of $12,550 without owing income tax*. If you are a sole proprietor or have a partnership with your spouse and your child is age 17 or younger, the IRS says you don't need to pay Social Security or Medicare, or FUTA (unemployment) tax on their wages
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