How do I properly include prize money and taxable scholarships when filing for federal taxes and in New Jersey?

[ns3xton]

I have roughly $14,000 in income on my W2 forms for 2016. I also received a $10,000 merit scholarship with no restrictions that I did not use for tuition, and a $3,000 prize in a competition at my university.

How do I properly report the taxable scholarship and the prize when I file federally and in New Jersey? Do the merit scholarship and the prize count as earned income? Am I correct in understanding that I should have $27,000 total in taxable income for 2016, adding up my W2 income with the scholarship and prize?

Thank you.

[RichardG]

The amounts you received for scholarships and prizes are taxable income.  If you received Form 1099-MISC for these payments, report them in TurboTax under Other Common Income as prizes.  If you didn't receive tax forms, report the income under  Federal Taxes>Wages & Income>Less Common Income>Miscellaneous Income>Other Reportable Income.  Type SCH in the description box.