Disabled dependent with gambling winnings and small w2

Permanently and totally disabled? gross income test won't apply, support test will.

Disabled dependent working at sheltered workshop.

For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year doesn't include income for services the individual performs at a sheltered workshop. The availability of medical care at the workshop must be the main reason for the individual's presence there. Also, the income must come solely from activities at the workshop that are incident to this medical care.

A “sheltered workshop” is a school that:

Permanently and totally disabled has the same meaning  as for Qualifying Child.

As Camp said, a permenantly disabled child still follows the "Qualifying Child" rules.  So if the 'child' lived with the father for over half of the year and did not provide over half of his own support, it seems like he DOES qualify as a dependent.

However, the Standard Deduction for dependents is different, so the dependent will have "taxable income" (after the Standard Deduction) and will need to file a tax return.

Although many people seem to improperly ignore this, it is quite possible that the 'child' had more than $1820 of gambling income.  He needs to report ALL gambling income, not just the ones that are large enough to be on a W-2G.