No. Supplemental Security Income (SSI) is excludable from gross income. However, for purposes of claiming a dependency exemption, you have to take government benefits into account in determining support. You can claim an exemption for a qualifying child, such as yours, as long as the child does not provide more than half of his or her own support. Government benefits, such as SSI, are treated as provided by a third party (the government) to the dependent.
Items directly reducing income. Personal deductions such as for mortgage interest, state and local taxes, and charitable contributions are allowed only if deductions are itemized on Schedule A, but deductions such as for alimony, capital losses, moving expenses to a new job location, business losses, student loan interest, and IRA and Keogh deductions are deducted from gross income even if itemized deductions are not claimed.