My child’s father has the audacity to claim my daughter in his taxes but the thing is, my daughter does not live with him, she has NEVER lived with him. How do I report that? Does that consider as tax fraud?

There is a way to have it proved in court where your child's permanent resident is and who is the primary caregiver of your child. However, that is family court and does require a lawyer to file that motion so that your child's father can no longer legally claim the child on his taxes. If you don't have enough money for a lawyer there are free services but of course they take longer due to there waiting list. Its also important to note that proving your the primary caregiver has nothing to do with custody. Hopes this helps.

Maybe, do he pay child support?