No I did not receive EIC. My unearned income was just above the max. I have researched and it seems I owed taxes based on my VA AGI but because my income was below federal poverty level, the system automatically applied the Virginia Low Income Credit to my running total before asking any questions about it. When I got to the screen where it asked about my dependent's income for determining if I qualified for that credit, it simply added the credit back.
So, to be clear, I am not reporting their income on my federal return at all. And it seems I am not officially reporting their income on my Virginia state return either. I am giving them the total income for everyone on my return for the purposes of determining if I qualify for the VA Low Income Credit. If that aggregate amount exceeds the max to qualify for that credit, then they take the credit away, and I essentially owe the state the taxes I originally owed but just didn't know it at the time. In other words, it didn't seem like I had to pay because the credit was automatically applied before I had to enter the family incomes.
Does that make sense? Maybe I've got it wrong though.
