The 3,000 would be considered as NJ income since the school that awarded the prize is located in NJ.
Enter the 1099-MISC on the Federal return:
Click on Federal then Wages &
Income
When you get to the Income section, (you may need to click
"Show All Income" first) Scroll down to Other Common Income and Click Show more
Click Start or Revisit for Form
1099-MISC
Enter a description
for the non-work income, such as “Cash Award” for the reason and Continue
Click “None of these apply.” at the bottom of
the list for “Does one of these uncommon situations apply? And Continue
Answer “No,
it didn’t involve work like my main job.” on the next screen and Continue.
Click the year
you got the reward and Continue (if you received this income for more than 2 years, the IRS
will consider it as self-employment)
Answer “No, it didn’t involve an intent to earn
money.” on the next screen and continue.
Do you have another
1099-MISC? Click No and Continue
Click Done.
The income will show as a line item on line 21 of Schedule 1
of the 1040 and not as Self-employment.
Allocate it onto your non-resident NJ return.
