You can use the nonfarm optional method if net profits from all self-employment (including K-1 material participant income) is less than $4,721 and also less than 72.189% of your gross nonfarm self-employment income.
To use this method, you also must be regularly self-employed. You meet this requirement if your actual net earnings from self-employment were $400 or more in 2 of the 3 years preceding the year you use the nonfarm optional method. The net earnings of $400 or more could be from either farm or nonfarm earnings or both.
Hope this helps.
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Based upon your stated facts, your daughter cannot use the optional nonfarm method, and she owes $316 in self-employment tax. She needs to either file an amended return with a Schedule SE filing, or she can accept the IRS finding and pay.
I'd like to say that there is some magic bullet here, but unless your daughter can find a few more expenses to put on an amended Schedule C, so as to reduce her income below $400, then she will have to pay the self-employment tax.
Please don't shoot the messenger.