You do not report a dependent's earned income on your tax return from a W-2 or a Form 1099-MISC.
The dependent can file their own income tax return to report the income received. They indicate on their return that they can be claimed as a dependent. A tax return is required to be filed if the income reported on the 1099-MISC is $400 or more. If the amount received is entered in box 7 of the 1099 then a Schedule C for self-employment has to be filed reporting the income and expenses for the self-employment.
