My daughter cashed a bond given to her by her grandmother. Both names were on the bond. We received a 1099 with my mom's name, our address and my daughter's social security number on it.... My daughter does not have any income for this year. So can we just leave it alone? My mother told me to get a new 1099 but in other answers I saw that it doesn't seem to matter. I would think if my daughter is not filing any taxes that we can just ignore the 1099? The 1099 is for only $131. Or do I need to get a new one made out with my daughter's name on it?

The social security number on the 1099 indicates the person responsible for paying the taxes on that earned/unearned income. You cannot pay tax for your child's income in your name. On the plus side, as all she made was this $131, Then she did not earn enough money to justify even filing a return even as a dependent. In that case nothing must be done at all. Just ignore it and don't bother filing a return. The savings bond education tax exclusion permits qualified tax-payers to exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE savings bonds and Series I savings bonds issued.

Thank you so much.
So that would mean my 21 year old son, a student, doesn't have to claim the interest from the bond he cashed on his taxes? He did have an income and will be filing a tax return.

So that would mean my 21 year old son, a student, doesn't have to claim the interest from the bond he cashed on his taxes?”======> No even if he is your dependent, he doesn’t need to file his return as a dependent due to lower income of $131, the int income; to file his re turn as dependent, his unearned income, .e, interest. CG, or div or etc was over $950 in 2012.
“ He did have an income and will be filing a tax return.”======>Then he needs to report it $131 on his return. Is he your dependent ??? if yes then he needs to file his return if his unearned income was over $950 or his earned income ,i.e, salary wage or etc was over $5950 OR his gross income was more than the larger of $950 of unearned income or $5950 of earned income( earned income +$300) up to $5950.