Yes, your daughter needs to file a tax return since she has more than $400 of self-employment income. The self-employment income that she receive can be reported on a 1099-MISC or 1099-NEC.
The good thing is that she'll be able to deduct reasonable and customary business expenses from that income.
To report self-employment income, follow the steps below:
- Open TurboTax.
- Enter self employed income in the search bar
- Select the Jump to link at the top of the search results.
- Answer Yes on the Did you have any self-employment income or expenses? screen.
- Answer the questions on the following screens until you arrive at Let's enter the income for your work.
- Select 1099-NEC and select Continue.
- You can enter the info from your 1099 form on the following screens.
For additional information, refer to the TurboTax Help articles How to File Taxes with IRS Form 1099-NEC, Reporting Self-Employment Business Income and Deductions, and How do I report income from self-employment?
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