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Is a withdrawal from an IRA considered income if I used it for closing costs on a house?
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Withdrawals from a traditional IRA are always taxable income. If you are under age 59-1/2, there is also a 10% penalty for early withdrawal. If you qualify as a "first time home buyer", you can skip the 10% on up to $10,000 of withdrawal, but you still owe income tax, and you owe the penalty if you withdraw more than $10,000.
For this exception, "first time" home buyer means that in the past 2 years before the current purchase, you did not live in a home you owned. (You could own rental property as long as you didn't live there.)
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