Prize money is taxable income.
The answers above only instructed how to have it not be reported as Self-Employment" income and therefore not being subject to Self-Employment tax, which is Social Security and Medicare Tax (FICA)
She will still need to pay income tax on the prize value.
When you daughter gets paid for NIL-
Yes, the student will need to claim that NIL income as Self-Employment income.
She will be required to file Schedule C.
She will be charged "Self-Employment" tax (FICA)
She will be allowed to claim any expenses that are ordinary and necessary for her business
She will not be eligible for Qualified Business Income Deduction because her business will be considered Specified Service Trade or Business (SSTB)
SSTB
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