Yes, you should report this under Other Common Income as a 1099-NEC (for ease of entry) using a description that includes "Dependent Child." On the page "Does one of these uncommon situations apply?", check the box for "This is not money earned as an employee..."
Now go to Less Common Income >> Miscellaneous Income >> Other reportable Income. A good description might be "Dependent Income Pub 929" (to reference the IRS publication that applies). Enter the same amount as shown on Form 1099-MISC, but as a negative number.
These two steps will report the income on your Schedule 1 Line 8j and the offset on Line 8z. Note that Schedule 1 has no designated lines for "1099-MISC" or "1099-NEC." This is because the IRS doesn't track these forms as much as the dollar amount. As long as you report the income, you have satisfied the IRS.
Your child would enter this on his return under Schedule C Self-Employment, along with any related expenses. Since the 1099 was not issued to his SSN, he should enter this as other business income, not on the 1099 page.
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