Fasa

You do not report your daughter's income on your tax return.

If she is a full-time college student, under age 24 and she did not provide more than half of her own support with her income, then you can claim her as a dependent.

If her income is wages reported on form W-2, she is not required to file a tax return if she earned less than $12,550. However, if she had taxes withheld, she can file a tax return to claim a refund.

If her income is self-employed income reported on form 1099-NEC, she is required to file a tax return if she earned more than $400.

If she files a tax return, she has to indicate in TurboTax that she can be claimed as a dependent by someone else.

This is an income tax forum.  You'll need to ask the FAFSA people that question.

One reference: https://studentaid.gov/apply-for-aid/fafsa/filling-out/dependency