Why does an MS W-2 displays the word "RED" and an amount in box 14?
The word "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 on the Credits tab. 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 20YY 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.