Get your taxes done using TurboTax

If you have a 1099-G with an amount in box 6 (Taxable Grants), enter it in the personal section.   When you go through the state return, TurboTax won't tax it if it is a NJEDA (New Jersey Economic Development Authority) grant.    There is not a place to enter a 1099-G in the business income section, but yes, if it were entered in the business income section on the federal return, it would also show up as business income on the state return.    And yes, it would generate self-employment tax.  

Don't enter it with the Unemployment or Paid Family Leave 1099--Gs.   Use the OTHER 1099-G category in the Other Common Income section, then your state return will give it the proper tax treatment.