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I did not enter their income on my federal return. I did not add it to my Virginia state return either, until it asked me to list it when checking to see if I was eligible for the Virginia low income tax credit. I was not, therefore it added my children's income to mine for the Virginia Family AGI, and then said I owed taxes to Virginia. I don't know if I am required to keep their income in that section of my Virginia return. If I am, then I owe a good amount even though my children do not deposit their earnings into a family account. Hope this makes more sense.

Thanks.