My daughter worked a four month paid college internship last year. I am reporting her income and deducting expenses such as rent, utilities and food on Schedule C-EZ and taking it to form 1040. After her standard deduction she has no federal income tax liability; however, in filling out Schedule SE she does have a social security payment to make. Her internship was with NASA, does that make a difference? Thanks for your advice.

Did she receive a 1099 or W2?

1099

She owes SE tax.

Where did you get all those expenses to deduct? Standard living expenses are not deductible. And yes she would owe SE taxes is she was paid as a contractor.