If I was you I would retain a lawyer for your court appearance and give him a heads up on the bigger picture.

Quick update: we decided not to move into the bigger house in the burbs (it didn’t appraise and the seller wouldn’t come down) and are happily still living below our means.The Financial freedom that comes with living modestly is so sweet it will take a very special house to get us to move at this point.ALSO, similar townhome/same community as ours just sold for $30k MORE than what we had ours under contract for a month ago, so I feel like the low new house appraisal causing our deal to fall through was a blessing in disguise.

Bigger Pockets is a phenomenal resource connecting with those in the industry and getting started in REI.

@Logan Allec provided an outstanding explanation, and @Basit Siddiqi added couple good points.I just want to frame the bigger picture: the new law does NOT hurt ("hose", using your word) people who receive 1099-G for prior overpayment. 

Hello Bigger pockets, I am a new long distance investor.

@Ramon Vazquez you might get some good responses here but Bigger Pockets also has a Texas forum. 

@Alain Mario Eboli Jr.Welcome to Bigger Pockets.

@Zachary McHughWelcome to Bigger Pockets.

I found out about Bigger pockets a year ago and have since tuned into Bigger pockets podcast because it is awesome!

I'm new to Bigger Pockets, but it sounds too good to be true.