Purchased primary residence Oct 2015. Seller paid property taxes at closing. My mortgage company erroneously paid the same tax bill again Dec 2015 out of escrow. Escrow was refunded Spring 2016. Since the erroneous payment and subsequent refund occurred in two different calendar years it increased my 1098 for 2015 and reduced it for 2016. My deductions are not large enough to itemize for 2015 even with the mistaken tax payment. And now I have to pay taxes on the property tax refund I received in 2016. I'm facing double income taxation by being taxed again on after-tax money because the payment/refund occurred in 2 calendar years. Do I have any recourse?
