It's sees odd that she is taxed on this. The total is just under $1100. If she was an employee and received a W2 for that same amount would she have been taxed on this?
No, as an employee, her employer withholds taxes and contributes half of the SE taxes. Since she is not an employee, all the taxes are paid now.
Yes. Since the amount is greater than $400 or more then your child is required to file a tax return. There will be self employment tax that must be paid.
You could still claim your child as a dependent if this is the only income they have. You must create a new account if you use TurboTax Online or you can create a new return if you are using TurboTax CD/Download.
[Edited: 04/18/2022 | 8:00a PST]