New York State Team This year will undoubtedly be the first time some New Yorkers learn about paying taxes on unemployment benefits. The challenges of the COVID-19 pandemic meant 2020 was the first time some Gen Z members and millennials entered the workforce and claimed unemployment benefits. Last year, New York received more than 4 million initial claims for unemployment — more than 20% of the state’s total population. While withholding taxes for some may have been an option, those who bore the economic brunt of the pandemic might not have had the means to allocate resources towards income taxes. Here is a brief rundown of how to start addressing any unpaid taxes due to unemployment insurance: