If your daughter did not perform any type of service for the money, then she can report it as 'Other Income' on her tax return, Do not report it on your tax return.
If she did perform a service for the money then it will be considered self employment income. You will be prompted to upgrade to a different version of TurboTax.
The following will explain how to report it in each the scenarios. If there is service related to it then self employment tax will also be factored into her tax return.
Other Income: To report this income you can use the following steps.
Go to the Wages and Income section of TurboTax
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (Sponsorship) and the amount
Self Employment Income: To set up your business schedule:
The name of the business is usually your name, if there is no separate business location the business address is your address.
Open or continue your return.
Search for schedule c > Press enter > click the Jump to link in the search results.
Answer Yes to Did you have any self-employment income or expenses?
If you've already entered self-employment work and need to enter more, select Add another line of work.
What is IRS Form 8615 - Review this is your child is not performing a service for the income. Self employment is earned income and other income is not.
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