Why is PTO generating State and Local Refunds Taxable in 2025 worksheet and seems to have a calculation error?

[Holistic FPC]

The client is questioning the program after seeing the State and Local Refunds Taxable in 2025 worksheet.  The worksheet detail is pasted below. 

Here is her question.

Line 11. Enter the larger of line 9 or line 10," shouldn't it be $29,200 instead of 0?

Could someone shed light on this?  Thank you!

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State and Local Refunds Taxable in 2025
(IRS Pub. 525)
1. State and local income tax refunds (current year) 3,502.
2. Refunds attributable to post 12/31/2024 payments per IRS Pub. 525 0.
3. Net state and local income tax refunds 3,502.
4. State and local income taxes included on Schedule A, line 5e 0.
5. Allowable general sales tax deduction 0.
6. Excess of income taxes deducted over sales taxes deducted 0.
7. Enter the smaller of line 3 or line 6 0.
8. Itemized deductions from Schedule A, line 17 30,546.
9. Recomputed itemized deductions, if state/local taxes limited 0.
10. Standard deduction 29,200.
11. Enter the larger of line 9 or line 10 0.
12. Subtract line 11 from line 8 (not less than 0) 0.
13. Enter the smaller of line 7 or line 12 0.
14. Negative taxable income (current year) 0.
15. State and local refunds taxable next year
(add lines 13 and 14, but not less than 0)

[Holistic FPC]

I got the answer.  Sharing it here.

The program is working to come up with the correct answer (here it's $0).  The IRS rules in this calculation are to avoid blank and negative numbers (where it says 'no less than 0').  It's how the software was programmed to comply with IRS rules. So if line 11 shows the 29200, instead of 0, it's going to have negative amounts "on line 12". To avoid having negative amounts, it stops the line 10 amount from flowing to line 11, and assigns 0 on line 11 instead. It's not that its picking line 9 (smaller amount) over line 10 (the larger amount). Line 11 just is assigned to have 0 as the value. It's really to avoid having negative numbers, and blank lines. Per the IRS rule.