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Does cashing out a 401k count as income?

I want to claim my dad who is disabled but he cashed out his pension so im not sure if its a good idea
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Expert Alumni

Does cashing out a 401k count as income?

Yes, cashing 401K account is considered taxable income to your parent. 

You can claim your dad if his pension is less than $4,050 and you provided more than half of his total support. Otherwise, you don't qualify to claim him. 

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