Home Insurance loss of rent claim shorted by statefarm

[Rome Cabrera]

Hi guys i recently had a fire at a rental property and my policy covered actual loss of rent 

The adjuster pays me 80% of the maximum 12 months since its been 9 months investigating me and repairs will take longer than 3 he tells me state farm holds 20% until i can prove fair rental market value from my tax returns . I send him my returns and now he tells me i owe them $5k due to me claiming repairs on my taxes dropping my fair rental value to half of what they owed me originally ive called a few lawyers but none have answered if thats a legal for them to do that i wonder how many people they have shorted by that method and just not going off of the hud fair rental market value website is it worth challenging in smalls claim court ? the amount is ruffly under $10k.