“Where on her 1099 tax return should that amount be included?”----->I guess technically, it sounds if your daughter is an employee. However, your daughter is probably not in a position to challenge the company on this. She is considered self-employed ( independent contractor) and must file a Schedule C or C-EZ with her return as long as her self employed income is $400 or more. Your daughter will report her income and expenses on schedule C or C-EZ of Form 1040. Then she puts net income (or loss) on line 12 of Form 1040. As long as her income on SCH SE line 4 is $400 or exceeds $400, the(her) income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040. If she anticipated tax liability exceeds $1,000, then she should make estimated payments in order to avoid penalties and interest. This is done on the 15th of April, June, September, and January when necessary. She reports the estimated payments by sending a check along with Form 1040-ES. There is a worksheet accompanying the 1040-ES that will help you determine the amount you should pay.However, she does not have to pay estimated tax for the current year if she meets all three of the following conditions: she had no tax liability for the prior year ,she were a U.S. citizen or resident for the whole year, her prior tax year covered a 12 month period.
Please visit the IRS website here;
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf Estimated Taxes http://www.irs.gov/pub/irs-pdf/f1040sc.pdf http://www.irs.gov/pub/irs-pdf/f1040sce.pdf
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