So problem solved, here is what support had me do.   This is Destiny with Lacerte Support this email is regarding your call today about New York 1041 overpayment of tax not applying to next years tax. This is what I have found, due to this being an estate return and estates generally subject to estimated tax payments if the estate has not been open for over 2 years, that is the reason this is not working for the state but is in federals case; there is a way for you to see this is the issue as well: go to screen 2.1 miscellaneous Information and look for the override field 1=decedents estate open for over 2 years, 2=leave question blank(O) and enter a 1 this allows the overpayment to be applied to next years tax.