Alan wrote: ...
> Important is to do the right thing. Please inform how I should advice
>> her in regards of the taxes .
...
For tax purposes, she is a resident alien of the USA because of the
> amount of time of physical presence in the US. As such, she is taxed in
> the same manner as US citizens are taxed.
>
> She must include her worldwide income on her tax return. As she is
> self-employed, she reports the income from her profession on Form 1040
> Schedule C. She can deduct her ordinary & necessary business expenses
> from her income on that schedule. If her net earnings from
> self-employment are at least $400 she must complete Schedule SE, where
> she computes her self-employment (social security & medicare) taxes. ...
And, I would presume, if this is the situation going forward, she should file and pay estimated quarterlies in future years as well to avoid possible penalties/interest???