Drake Tax - MS: W-2 Box RED

MS W-2 displays the word "RED" and an amount in box 14

The literal "RED" in box 14 indicates the taxpayer may be eligible for a Revenue Bond Service Credit on their Mississippi return. This amount can be entered on screen W2, box 14 for record keeping purposes, however, a direct entry is required if the taxpayer qualified to take the credit this year.

To enter the credit:

• Go to the MS CRED screen.

• For the Code, enter 13 MS Business Finance Corp Revenue Bond Service Credit (Sec.27-7-22.3).

• Enter the amount from box 14 in the Credit Amount Earned in 2023 and the Credit Used This Year fields.

Per the instructions, the credit is non-refundable which means that it cannot exceed the tax due and cannot be carried forward. The credit shows on MS 80-401 and then carry to the MS 80-105, page 1, line 19 along with any other credits entered.

For more information about the credit, see the MS Instructions.