I received a form from VA department of Taxation. On it, box 2 has $88.42 in "interest paid on tax refund" from 2015. I'm required to report it. Where do I put it?

You can enter it as a 1099-INT (Interest from 1099-INT interview in Personal Income >  Interest and Dividends) or as Other Reportable Income. 

For Other Reportable Income:

• Go to Less Common Income, Miscellaneous Income and Other reportable income. Enter "Lawsuit settlement" in the Search Box and Select "Jump to lawsuit settlement" "to get to this screen ("Lawsuit settlement" is just an effective search term to get to this interview screen) 

• Continue to the screen "Other Reportable Income". Enter the description as "Interest on Refund" and the amount These are NOT wages.   
   

A corresponding amount will be entered on line 8 of Schedule 1 and Form 1040