I live in NJ, work in NY. How do I answer NY income allocation? It asks to enter the amount of federal income that was also derived from NY sources. Is it all of it?

[DanielV01]

In this case Yes.  It is common for a New York company to include all of the income earned with the company as reportable and taxable to New York.  This is a requirement of the state, because the state does not assume that there is work performed outside of the state that is not taxed.  In part, this is because many people work as telecommuters from home.  New York requires a telecommuter working for a New York company to pay New York tax on their income.

You don't need to worry about this, though because all of your work was performed in New York.  So you will say 100% of the income was from NY sources.