You do not enter the dependent's income on your tax return. If the income was reported on a W-2 and that was his or her only income, he or she is not required to file a tax return. If federal income tax was withheld, they should file a return to get a refund.
If the income was reported on a 1099-MISC or no form, they must file a return to pay self employment tax.
If they file a return, they must indicate on the return that they can be claimed by someone else.
