If she was working a summer internship, then she was intending to earn money doing so by performing services for the company and getting paid in return.
Answering no to the question about whether there is intent to earn money would apply in a situation where the payment was made as a prize or lawsuit settlement, something for which there was no service or work provided.
When you check the box that there was an intent to earn money, the tax being calculated is self-employment tax -- Social Security and Medicare.
@phillyguy
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
