Net calories or not?

Ok, so I am very confused about all this net calories stuff here on MFP. I've figured out my BMR and TDEE (so many letters to figure out and remember!) and they are 1366 and 2359, respectively. I work out every day and I recently added Zumba to my fitness routine. Since then, I feel like I have been doing the same thing I always do, eating my 1200 calories a day (what I have been given by MFP) and usually some of my exercise calories back. Up until recently, I was losing weight. Now I have stalled. Now I am hungry seemingly all the time. Now I started paying attention to all this "net calories" stuff and realizing that all along, I must have actually been eating less than 1200 calories. WTH? I feel like I should be eating more, but MFP keeps telling me to eat 1200 calories, regardless of what I input in goals. So, if I am just trying to figure this out for myself, if I decide that I need to be eating 1800 calories a day, then is that 1800 "net calories" or is that just eat 1800 calories? Plus I don't know how to get MFP to say that it's ok for me to eat 1800 calories! If I make these changes, is it just always going to show that I'm over my calories for that day? And should I care anyway? Help! I am so confused right now.
Oh, I have about 15-20lbs left to lose. Just FYI