Virginia adjusted gross income for minor dependent

[chantillytax]

My 17-year old daughter earned $1700 in 2021 through her summer job and $1 interest from an account jointly held by her and me. Her employer did not deduct any federal tax from her paycheck but deducted a total of about $22 from her paycheck as Virginia tax. As she is below the tax filing income threshold, she will not be filing her own return and I will be claiming her as dependent on my return. 

When I work on Virginia state return, Turbo Tax asks for Virginia adjusted gross income (AGI) for each of my dependents.  What should I put for my daughter? Box 1 (Wages, tips, other comp.) of her W2? Zero? Or some other value?

Second, should I show the $1 bank interest earning on my return (as she is not filing her return and I am the joint account holder)?

[BillM223]

"What should I put for my daughter? " Enter 1,700. I assume that TurboTax is trying to determine if your family is eligible for the Credit for Low-income Individuals. See the instructions for line 11 on page 24 in the VA 760 instructions. I imagine that if your family income is higher that what's shown in the Poverty Guideline Table between instructions for line 11 and line 12 (above), then an exact number on your daughter's AGI won't matter.

Yes, you should report that $1 interest - actually, it will be $0.50 but since that gets rounded up - it's a dollar for you.

[chantillytax]

Thank you. This is very helpful. I will put $1700 for the Virginia AGI. As far as interest is concerned, it was actually $0.67 (which I can obviously ignore). But, if I wanted to show it on my return, will I show $0.34 (half of total interest earned on my daughter and my joint account)? And then show that the interest belongs to me only (I am filing a joint return with my spouse)?

[JulieS]

If you want it to show on your tax return, you will need to enter at least $ .50 because if you enter $ .34, it will round down to zero. 

According to the IRS anything less than $ .50 is "de minimis" and can be left off your tax return without consequence.