My daughter received a 1099-MISC from her lender for $5100. This was a credit they gave her on her mortgage during closing, does she really need to claim this as income?

Yes, this should be reported as income.  It represents value received by your daughter, and Form 1099-MISC is typically only used to report taxable income. 

To enter your Form 1099-MISC information so that it won't be considered self-employment income in TurboTax Online: 

1. Open TurboTax Online
2. Select  Tax Home in the left pane
3. Select the dropdown to the right of Wages & Income
4. Select  Pick up where you left off, Review/Edit or the edit pencil
5. On the Great! We've got your income info page, select the dropdown to the right of Other Common Income -- Tax refunds, 1099-G, 1099-NEC, 1099-MISC, 1099-K
6. Select Start to the right of Form 1099-MISC
7. Select Yes on the Did you get a 1099-MISC? page
8. Enter the information from your 1099-MISC on the Let's enter the income from your 1099-MISC page, then select Continue
9. On the Describe the reason for this 1099-MISC screen, enter First time home buyer incentive, then select Continue
10. On the Do one of these uncommon situations apply? screen, select the bullet next to None of these apply, then select Continue
11. On the Did the First time home buyer incentive involve work that's like [your] main job? page, select the bullet next to No, it didn't involve work like [your] main job, then select Continue
12. On the How often did [you] get income for First time home buyer incentive? page, answer appropriately, then select Continue
13. On the Did the First time home buyer incentive involve an intent to earn money? page, select the bullet next to No, it didn't involve an intent to earn money.  This indicates to the program that this wasn't self-employment income, so self-employment tax won't be triggered.  Select Continue
14. On the Your 1099-MISC summary page, select Done, unless you have more Forms 1099-MISC to enter

If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.

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Thank you for the guidance!

Upon further investigation, I realized that the $5100 was actually a grant from the lender.  With that being the case is it still taxable?  I ask because we never had to pay taxes on educational grants. 

Thank you!

Yes, it's still taxable. Generally, only down payment assistance  provided by a nonprofit organization may be tax free depending on facts and circumstances.  A down payment grants provided by a bank will be taxable income to the recipient, your daughter. It may be buried in the the loan documents, however the 1099-MISC was used to report it and the IRS has a copy as well.

@LoriWing 

Thank you for the info. Once I saved my return, exited the program and returned - I was able to follow your suggestions.