How did you use your account? Did you do her return in your online account? You might have overwrote your return and yours is gone. Online is only good for one return.
Or did you do a new return using the Desktop installed program?
Yes that is self employment income and she owes self employment tax on it. $500 is about right.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
