Filing Your Taxes

Recent Distributions
View a complete report of recent fund distributions.

View or print your online tax statements
Log in to your account, click the View Statements tab, and select Tax Statements

Turbo Tax and H&R Block At Home
Find answers to frequently asked questions about using these software packages to file your taxes electronically.

If you have any questions, please call a Harbor Shareholder Services Representative at 800-422-1050, Monday through Friday, between 8:00 a.m. and 6:00 p.m. Eastern time.

Tax Planning

It's never too early to contribute to your IRA...
Learn more about IRA contributions

Roth IRA vs Traditional IRA
Review our one-page guide to these two types of retirement accounts, or learn more about how to convert to a Roth IRA online.

Do Cost Basis rules affect you?
Learn more about the federal cost basis regulations in the Cost Basis section below.

Is there a tax penalty if my account is escheated?
Mutual Fund accounts are considered long term investments, however if you fail to contact us within the time period specified in the state in which your account is registered, we may be required to escheat your account(s) and turn your financial assets over to the state of your account registration. 

Generally, the remittance of non-retirement assets is non-taxable to the shareholder. However, the remittance of retirement assets may incur federal and/or state withholding in addition to an early withdrawal penalty if applicable. 

Harbor Funds Tax Statements

Tax Year 2019

The table below lists all of the various tax statements that Harbor distributed to shareholders in 2020. These statements are also available online when you log in 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 Estimated Mailing Schedule
1099-R Form 1099-R reports any distributions you have taken from your Harbor retirement accounts.  Mailed on January 13, 2020.
View 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 on January 23, 2020.
View online.
1099-B 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 on January 23, 2020.
View 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 on March 12, 2020.
View 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. 2nd week of May, 2020

Cost Basis

Mutual funds are required to provide cost basis information to shareholders and the Internal Revenue Service (IRS). You should be aware of these regulations and how they will affect the tax reporting on your taxable Harbor Funds accounts.

For more information on Cost Basis and how it may affect you, please visit the Cost Basis frequently asked questions.

Income From U.S. Government Obligations

Mutual fund dividends derived from U.S. government securities are exempt from state and local taxes. The table below shows the percentage of the ordinary dividend paid by each Harbor fund in 2019 that was derived from U.S. Treasury and certain 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 Bond Fund 21.44%
Harbor Core Bond Fund 13.71%
Harbor Real Return Fund 100.00%
Harbor Money Market Fund* 100.00%

* These funds meet the threshold requirements for California, Connecticut and New York, which require that at least 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, 2019

The following percentage of each fund's ordinary income dividend (income dividend plus short-term capital gain distribution) qualifies for the federal dividends-received deduction (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 98.62%
Harbor Small Cap Growth Opportunities Fund 8.44%
Harbor Small Cap Value Fund 100.00%
Harbor Small Cap Value Opportunities Fund 100.00%
Harbor Strategic Growth Fund 100.00%
Harbor Global Leaders Fund 100.00%
Harbor Convertible Securities Fund 2.69%

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

Year Ended December 31, 2019

Certain Harbor funds paid foreign taxes that can be passed through to shareholders. As a shareholder, you may be entitled to claim a foreign tax credit or take an itemized deduction on your federal income tax return for such amounts. Depending on your individual situation, you may be required 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; simply enter "RIC" on line i.

To calculate your total income from foreign sources paid by the fund, multiply the amount in Box 1a of your 1099-DIV by the percentage found in the column below titled "Percent of Box 1a That is Foreign Sourced Income". You may be required to adjust foreign sourced income by any foreign sourced qualified dividend income. The percent of Box 1a which is foreign sourced qualified dividend income may be found in the table titled, "Percent of Box 1a that is Foreign Sourced qualified dividend income." For more information please see Instructions to Form 1116 and IRS Publication 514, Foreign Tax Credit for Individuals.

Fund Name Percent of Box 1a That is Foreign Sourced Income Percent of Box 1a That is Foreign Sourced Qualified Dividend Income
Harbor Diversified International All Cap Fund 100.00% 93.82%
Harbor Emerging Markets Equity Fund 100.00% 79.49%
Harbor Focused International Fund 100.00% 73.34%
Harbor International Fund 100.00% 96.35%
Harbor International Growth Fund 100.00% 54.82%
Harbor International Small Cap Fund 100.00% 100.00%
Harbor Overseas Fund 100.00% 95.00%

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 following pages for detailed breakouts:

Harbor Diversified International All Cap Fund Foreign Tax Calculator
Harbor Emerging Markets Equity Fund Foreign Tax Calculator
Harbor Focused International Fund Foreign Tax Calculator
Harbor International Fund Foreign Tax Calculator
Harbor International Growth Fund Foreign Tax Calculator
Harbor International Small Cap Fund Foreign Tax Calculator
Harbor Overseas Fund Foreign Tax Calculator

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, 2019

The following percentage of each fund's ordinary income dividend (income dividend plus short-term capital gain distribution) is eligible for reduced tax rates as qualified dividend income (QDI) for 2019.

Fund Name 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 Growth Opportunities Fund
8.42%
Harbor Small Cap Value Fund 100.00%
Harbor Small Cap Value Opportunities Fund 100.00%
Harbor Strategic Growth Fund 100.00%
Harbor Diversified International All Cap Fund 97.09%
Harbor Emerging Markets Equity Fund 91.62%
Harbor Focused International Fund 78.45%
Harbor Global Leaders Fund 100.00%
Harbor International Fund 96.35%
Harbor International Growth Fund 55.27%
Harbor International Small Cap Fund 100.00%
Harbor Overseas Fund 97.69%
Harbor Convertible Securities Fund 3.01%

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.

Forms 8937

Organizational actions (e.g. return of capital) affecting the basis of securities held in Harbor Funds are reported on IRS Form 8937.

2017 Form 8937 - Merger of Mar Vista Strategic Growth Fund into Harbor Strategic Growth Fund
2016 Form 8937 - Harbor Commodity Real Return Strategy Fund