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If your kids made over $14,600, they were required to file a return and the income is added into your family income for VA credit.

If the kids made less than that, they are not required to file and it is not reported.

Thank you!  The fact that you switched to owing money means we need to look deeper into the requirements. The state definition of additions to income is key. As I followed the links, I wound up at the IRS definition of household income: Household income also includes the incomes of all of your dependents who are required to file tax returns because their income meets the filing threshold. Household income does not include a dependent's income if the dependent's income is below the filing threshold

The VA Credit for Low Income Individuals states: You may qualify to claim this credit if: 

Your family’s total Virginia adjusted gross income (VAGI) is below federal poverty guidelines.

To calculate your family VA adjusted gross income, we follow their rules:

Federal adjusted gross income (from your federal income tax return)
+ any required additions to income
-  your Social Security income and any allowable subtractions from income. 
Virginia adjusted gross income