The table below lists all of the various tax statements that Harbor will be sending out to shareholders in early 2012. These statements will also be available online when you login to your account.

Note: Not all shareholders will receive all of these documents - it depends on the funds and accounts you hold with us.

IRS Form	Description	Expected Mailing Date (may be subject to change)
1099-R	Form 1099-R reports any distributions you have taken from your Harbor retirement accounts.	Mailed: January 10, 2012 Available online
1099-DIV	The Form 1099-DIV is a record of all taxable capital gains and dividends paid to you, including those that have been re-invested in a given tax year. You would use Form 1099-DIV to help report income received from investments on your tax return.Note: Forms are not sent to investors who received or re-invested a total of less than $10 per fund.	Mailed: January 17, 2012 Available online
1099-B with Average Cost	Any redemptions you made during the tax year will result in a gain or loss, depending on whether the fund price increased or decreased from what you paid for it. For partial redemptions we calculate the cost basis of the redemption by adding up the cost basis for the entire account and dividing by the number of shares. To determine whether short- or long-term capital gains apply, the IRS presumes you sell the oldest shares first. Form 1099-B summarizes the proceeds and includes the costs basis of all transactions. Figures from Form 1099-B are used on IRS Form 1040, Schedule D.	Mailed: January 17, 2012 Available online
1042-S	Form 1042-S reports distributions of ordinary income dividends, long-term capital gains, gain from U.S. real property interests, and return of capital paid during the year to beneficial owners who are either non-resident aliens or foreign entities.	Mailed: March 14, 2012 Available online
5498	Form 5498 reports your IRA contributions to the IRS. Harbor files this form directly with the IRS by May 31. The copy you receive will be just that - a copy for your records. You do not need to submit the Form 5498 to the IRS.	May 14, 2012

Using Personal Accounting Software with Harbor Funds

           

Remember, your Harbor Funds account works with Quicken, TurboTax and H&R Block At Home.  You can download account data into Quicken, and download your tax information directly to TurboTax or H&R Block At Home.  Learn more...

Income from U.S. Government Obligations - Year Ended December 31, 2011

Mutual fund dividends from direct U.S. government securities are exempt from state and local taxes. The table below is the percentage of ordinary dividends paid by each Harbor fund in 2011 which was derived from U.S. Treasury and Federal Agency obligations. If the fund you own is not listed, it does not qualify for this exemption.

Fund Name	Percentage of Income Derived from U.S. Government Obligations
Harbor Commodity Real Return Strategy Fund*	26.98%
Harbor Unconstrained Bond Fund	12.68%
Harbor Bond Fund	7.34%
Harbor Real Return Fund*	27.46%
Harbor Money Market Fund	38.35%

* These funds meet the threshold requirements for California, Connecticut and New York, which require that 50% of a fund's assets at each quarter-end within the tax year consist of U.S. government obligations.

The information shown above should not be construed as specific tax, legal or investment advice. If you have questions, please consult with your tax adviser to determine the appropriate use of this information for your tax situation.

Corporate Dividends-Received Deduction -- Year Ended December 31, 2011

The following percentage of each fund's ordinary income (income dividend plus short-term capital gain distribution) qualifies for the federal 70% dividends-received deduction from corporate dividends received (DRD). To be eligible for the deduction you must be a taxable corporation. Your eligibility for this deduction could be affected by certain provisions of the Internal Revenue Code.

Fund Name	Percentage Eligible for Dividends-Received Deduction
Harbor Capital Appreciation Fund	100.00%
Harbor Large Cap Value Fund	100.00%
Harbor Mid Cap Value Fund	100.00%
Harbor Small Cap Value Fund	100.00%
Harbor International Fund	1.00%
Harbor Global Value Fund	51.03%
Harbor Flexible Capital Fund	74.71%

The information shown above should not be construed as specific tax, legal or investment advice. If you have questions, please consult with your tax adviser to determine the appropriate use of this information for your tax situation.

Foreign Tax Credit Information -- Year Ended December 31, 2011

Certain Harbor funds have elected to pass foreign taxes paid by the fund through to shareholders. As a shareholder, you may be entitled to claim a foreign tax credit or take an itemized deduction, as applicable, on your federal income tax return. Depending on your individual situation, you may need to file Foreign Tax Credit Form 1116 (Individual, Estate or Trust) or Form 1118 (Corporation).

Shareholders completing Form 1116 are no longer required to report foreign taxes paid on a country-by-country basis. To complete Part I of Form 1116, calculate your total income from foreign sources paid by the fund by multiplying the amount on Box 1a of your 1099-DIV by the percentage found in the following table and enter the result on line 1a. Enter "RIC" on line g. Enter foreign taxes paid from box 6 of 1099-DIV in Part II of the form.

Fund Name	Percent of Box 1a That is Foreign Sourced Income
Harbor International Fund	100.00%
Harbor Global Value Fund	69.58%

Certain states may require a breakout by country in order to claim a foreign tax credit on that state's tax return.  Please refer to the International Fund Foreign Tax Calculator and the Global Value Fund Foreign Tax Calculator for detailed breakouts.

The information shown above should not be construed as specific tax, legal or investment advice. If you have questions, please consult with your tax adviser to determine the appropriate use of this information for your tax situation.

Qualified Dividend Income - Year Ended December 31, 2011

The following percentage of each fund's ordinary income (income dividend plus short-term capital gain distribution) is eligible for reduced tax rates as qualified dividend income (QDI) during 2011.

Fund Name	2011 QDI Percentage
Harbor Capital Appreciation Fund	100.00%
Harbor Large Cap Value Fund	100.00%
Harbor Mid Cap Value Fund	100.00%
Harbor Small Cap Value Fund	100.00%
Harbor International Fund	100.00%
Harbor Global Value Fund	100.00%
Harbor Flexible Capital Fund	100.00%
Harbor Convertible Securities Fund	8.49%

The information shown above should not be construed as specific tax, legal or investment advice. If you have questions, please consult with your tax adviser to determine the appropriate use of this information for your tax situation.