1099-C debt forgiveness taxed twice

The one who would have to report taxable income would be the person that received the money, or your daughter in this case. 

You can either not report the form 1099-C income on your tax return, or report it and deduct it back off. I would suggest you report it since the IRS will have a copy of the 1099 form and come after you eventually. You can put in an entry to exclude the income from taxation after you add it as follows:

1. Go to the "Federal" section of TurboTax

2. Click on "Income and Expenses"

3. Find "Less Common Income" and choose the last entry "Miscellaneous Income"

4. On the next screen, "Miscellaneous Income" choose the last entry "Other Reportable Income"

5. Enter a description for your entry (1099-C sent in error), and enter the taxable amount you want to exclude from income as a negative number

You daughter may be able to exclude the income from taxation by filing form 982, which can be found in the desktop version of TurboTax. 

You can learn more about excluding cancelled debt from income by using this link:

https://www.irs.gov/taxtopics/tc431