Frequently Asked Questions About Taxes
This page contains answers to some of the most commonly asked questions. Click on a question below to read the answer.
FAQs
What software does John Hancock Investments use for downloading account-specific tax information?
Where can I access account- or tax-specific information for my account(s)?
Where can I access mutual fund-specific tax information?
When will my 2017 tax form mail?
What information is reported on an IRS 1099-DIV tax form?
Why did I not receive an IRS 1099-DIV tax form for my account even though I received dividends last year?
Why did I receive an IRS 1099-DIV tax form on my tax-exempt fund?
Why are reinvested dividends taxable on my nonqualified account and reflected on my IRS 1099-DIV tax form?
Why are the distribution amounts on the IRS 1099-DIV tax form different from my year-end statement?
Why do mutual funds pay capital gains?
What is the difference between record date, ex-date, and payable date?
What information is reported on an IRS 1099-B tax form?
Why haven’t I received an IRS 1099-B tax form for my money market account?
What is cost basis?
What information is reported on an IRS 1099-R tax form?
What is the IRA contribution limit for 2017?
What information is reported on an IRS 5498 tax form?
Why are IRS 5498 tax forms not mailed until May 2018?
What is a return of capital distribution?
Why am I receiving a foreign tax credit on my investment(s) in certain fund(s) of funds when I have not in the past?
Why doesn't my prior year SEP or SIMPLE contribution show on my Form 5498?


What software does John Hancock Investments use for downloading account-specific tax information?

John Hancock Investments uses H&R Block Tax Software® and TurboTax for downloading account-specific tax information. They are two of the most widely used tax software programs.


Where can I access account- or tax-specific information for my account(s)?

To access account- or tax-specific information for your account(s), please click on the "Investor login" link located at the top right-hand corner of the homepage or click here to go directly to the login screen. If you are an active registered user, please log in to your account to access this information.

First-time users can click on the First Time User button to register as a new user and proceed to access this information.

*Note: To find account- or tax-specific information once you have logged in to your account:
  1. Choose the desired fund/account from your portfolio.
  2. Select "Prior Year Tax Information" from the Services menu on the left-hand side of the page.


Where can I access mutual fund-specific tax information?


When will my 2017 tax form mail?


What information is reported on an IRS 1099-DIV tax form?

The IRS 1099-DIV tax form reports federally taxable capital gain and dividend distributions made during the year (or reinvested) on non-retirement, nonqualified accounts. It also reports any foreign tax paid during the year.


Why did I not receive an IRS 1099-DIV tax form for my account even though I received dividends last year?

There are two possible reasons:
  1. Your account is a qualified retirement account that does not produce a 1099-DIV tax form.
  2. Nonqualified accounts with less than $10 of taxable capital gain and dividend distributions do not produce a 1099-DIV tax form per IRS reporting guideline requirements.


Why did I receive an IRS 1099-DIV tax form on my tax-exempt fund?

There are three possible reasons:
  1. A capital gain was paid.
  2. A portion of the dividend you received was taxable.
  3. A tax-exempt interest dividend was paid.


Why are reinvested dividends taxable on my nonqualified account and reported on my IRS 1099-DIV tax form?

The IRS requires that dividend distributions on nonqualified accounts be taxed, even if they are reinvested. Reinvested dividend distributions are included on the 1099-DIV tax form.


Why are the distribution amounts on the IRS 1099-DIV tax form different from my year-end statement?

This is due to a fund reclassifying a portion of its dividend, short-term capital gain, or long-term capital gain distributions. When a reclassification occurs, the total distributions remain the same, but the breakdown of the distributions changes. As a result, the distributions reported on your tax form will not match the amount(s) on your year-end statement. You should use the amount(s) on your tax form to file your taxes.


Why do mutual funds pay capital gains?

When a mutual fund sells securities in its portfolio, it realizes gains or losses. If the fund's gains exceed its losses, the fund is required to distribute net gains to all shareholders before the end of the calendar year. These distributions occur once or twice per year and are made primarily for tax reasons.


What is the difference between record date, ex-date, and payable date?

Record date refers to the date on which shareholders of record are entitled to receive the dividend or distribution.

Ex-date is the date on which the net asset value (NAV) of the fund drops by the amount of the record date dividend or distribution.

Payable date is the date that dividend or distribution payments are sent to shareholders that do not reinvest their dividends or distributions. Shareholders who reinvest their dividends or distributions receive additional shares in their accounts through the distribution reinvestment program.


What information is reported on an IRS 1099-B tax form?

Shareholders who sold or exchanged shares from a non-retirement account or a non-money market account receive a 1099-B tax form. The 1099-B reports the amount of shares sold, the date of the sale, and the proceeds received from the sale. If the shares sold were originally purchased on or after January 2, 2013, then the 1099-B tax form will include cost basis information.

To calculate gain or loss on the sale of shares originally purchased before January 2, 2013, shareholders need to determine their cost basis. Shareholders with questions regarding how to calculate their cost basis should speak with their financial representative or personal tax advisor.


Why haven't I received an IRS 1099-B tax form for my money market account?

Money market funds do not produce a 1099-B tax form as shares are generally bought and sold at a constant $1.00 NAV, thus generating no gain or loss. However, when you sell shares from any other type of mutual fund, a 1099-B tax form is generated.


What is cost basis?

Cost basis is the amount you paid to acquire your shares. This cost basis is used to determine capital gain or loss on the sale of your shares. Shareholders with questions regarding how to calculate their cost basis should speak with their financial representative or personal tax advisor. Please note that John Hancock will calculate and report cost basis information for covered shares (shares purchased on or after January 2, 2013, in non-retirement/non-education saving accounts).


What information is reported on an IRS 1099-R tax form?

The 1099-R tax form is generally used to report distributions from pensions, annuities, profit-sharing and retirement plans, IRAs, and insurance contracts. The following are some of the items included on the form: the gross distribution paid during the given tax year, the amount of the distribution that is taxable, the federal income tax that has been withheld, and a code that identifies the type of distributions made to the holder of the plan.


What is the IRA contribution limit for 2017?

  1. Contribution limits for traditional and Roth IRAs, will generally increase each year to incorporate inflation. The contribution limit for 2017 is the lesser of the amount of earned income for the taxable year or $5,500.
  2. If you are age 50 or older (as of December 31, 2017), you can make an additional catch-up contribution, up to $1,000. Hence, your total contribution can be $6,500 for 2017.


What information is reported on an IRS 5498 tax form?

The 5498 tax form reports the fair market value of your IRA at year end, any rollovers and contributions made to your traditional IRA, Roth IRA, SEP IRA, or SIMPLE IRA, and any recharacterizations of an IRA contribution.


Why are IRS 5498 tax forms not mailed until May 2018?

Your 5498 tax form accounts for contributions through the May 31, 2018, tax filing deadline.
(The filing deadline may vary. Please check with your state.)


What is a return of capital distribution?

A return of capital distribution is a distribution in excess of a fund's current and accumulated earnings and profits. It is generally a non taxable distribution that reduces a shareholder's cost basis of shares in the fund. The amount of the return of capital distribution will be reported in Box 3 of the 1099-DIV form.


Why am I receiving a foreign tax credit on my investment(s) in certain fund(s) of funds when I have not in the past?

Recently enacted tax legislation meant to modernize tax rules on mutual fund investments now allows for the pass through of foreign tax credits on fund(s) of funds that meet certain requirements. Certain funds that are eligible in 2017 have elected to pass through foreign tax credits received from their underlying funds. Shareholders with questions regarding the use of such tax credits should speak with their financial representative or personal tax advisor.


Why doesn't my prior year SEP or SIMPLE contribution show on my Form 5498?

SEP and SIMPLE contributions are reported on Form 5498 in the calendar year in which they are received by John Hancock, regardless of the tax year for which they were made. Your 2017 tax form will show only SEP and SIMPLE contributions made between January 1, 2017 and December 31, 2017. Contributions made in 2018, whether designated for 2017 or 2018, will be reported on the 2018 Form 5498, which will be sent to you in May 2019.



Previous Years

View tax information for all of our mutual funds for 2016 and 2015.

 
This material does not constitute tax, legal, or accounting advice, and neither John Hancock nor any of its agents, employees, or registered representatives are in the business of offering such advice. It was not intended or written for use, and cannot be used, by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

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