diff --git a/common/lib/capa/capa/inputtypes.py b/common/lib/capa/capa/inputtypes.py
index c20ee1101c..4320437525 100644
--- a/common/lib/capa/capa/inputtypes.py
+++ b/common/lib/capa/capa/inputtypes.py
@@ -976,6 +976,11 @@ class AnnotationInput(InputTypeBase):
         self.tag_prompt = xml.findtext('./tag_prompt')
         self.options = self._find_options()
 
+        # Need to provide a value that JSON can parse if there is no
+        # student-supplied value yet.
+        if self.value == "":
+            self.value = 'null'
+
     def _find_options(self):
         options = []
         index = 0
diff --git a/common/lib/capa/capa/templates/annotationinput.html b/common/lib/capa/capa/templates/annotationinput.html
index eb136766f6..acae36042a 100644
--- a/common/lib/capa/capa/templates/annotationinput.html
+++ b/common/lib/capa/capa/templates/annotationinput.html
@@ -5,17 +5,18 @@
 <div class="annotation-body">
     <div class="prompt prompt-text">${text}</div>
     <div class="prompt">${comment_prompt}</div>
-    <textarea id="input_${id}_comment" name="input_${id}_comment"/>
+    <textarea class="comment" id="input_${id}_comment" name="input_${id}_comment"/>
     <div class="prompt">${tag_prompt}</div>
     <ul class="tags">
     % for option in options:
-          <li data-id="${option['id']}"><span>${option['description']}</span></li>
+          <li><span class="tag" data-id="${option['id']}">${option['description']}</span></li>
     % endfor
     </ul>
 
-    <div style="display:none">
-    Value: ${value} <input type="text" name="input_${id}" id="input_${id}"/>
-    TODO: make the textline hidden once it all works
+    <div style="display:block">
+        Value: ${value}
+        <br/><input type="text" class="value" name="input_${id}" id="input_${id}" value="${value}" size="75"/>
+        <br/>TODO: make the textline hidden once it all works
     <span id="answer_${id}"></span>
 
     % if status == 'unsubmitted':
diff --git a/common/static/js/capa/annotationinput.js b/common/static/js/capa/annotationinput.js
index 3a98f02c04..77fc6fa2ea 100644
--- a/common/static/js/capa/annotationinput.js
+++ b/common/static/js/capa/annotationinput.js
@@ -1,12 +1,79 @@
 (function () {
-    console.log('annotation input loaded: ', this);
-    var update = function() {
-             console.log("annotation input update");
-    };
+    var debug = true;
 
-    var inputs = $('.annotation-input input');
-    // update on load
-    inputs.each(update); 
-    // and on every change
-    inputs.bind("input", update);
+    var module = {
+        debug: debug,
+        inputSelector: '.annotation-input',
+        tagSelector: '.tag',
+        commentSelector: 'textarea.comment',
+        valueSelector: 'input.value', // stash tag selections and comment here as a JSON string...
+
+        init: function() {
+            var that = this;
+
+            if(this.debug) { console.log('annotation input loaded: '); }
+
+            $(this.inputSelector).each(function(index, el) {
+                if(!$(el).data('listening')) {
+                    $(el).delegate(that.tagSelector, 'click', $.proxy(that.onClickTag, that));
+                    $(el).delegate(that.commentSelector, 'change', $.proxy(that.onChangeComment, that));
+                    $(el).data('listening', 'yes');
+                }
+            });
+        },
+        onChangeComment: function(e) {
+            var value_el = this.findValueEl(e.target);
+            var current_value = this.currentValue(value_el);
+            var target_value = $(e.target).val();
+
+            current_value.comment = target_value;
+            this.setValue(value_el, current_value);
+        },
+        onClickTag: function(e) {
+            var target_el = e.target, target_value, target_index;
+            var value_el, current_value;
+
+            value_el = this.findValueEl(e.target);
+            current_value = this.currentValue(value_el);
+            target_value = $(e.target).data('id');
+
+            if(!$(target_el).hasClass('selected')) {
+                current_value.options.push(target_value);
+            } else {
+                target_index = current_value.options.indexOf(target_value);
+                if(target_index !== -1) {
+                    current_value.options.splice(target_index, 1);
+                }
+            }
+
+            this.setValue(value_el, current_value);
+            $(target_el).toggleClass('selected');
+        },
+        findValueEl: function(target_el) {
+            var input_el = $(target_el).closest(this.inputSelector);
+            return $(this.valueSelector, input_el);
+        },
+        currentValue: function(value_el) {
+            var json = $(value_el).val();
+
+            var result = JSON.parse(json);
+            if(result === null) {
+                result = {};
+            }
+            if(!result.hasOwnProperty('options')) {
+                result.options = [];
+            }
+            if(!result.hasOwnProperty('comment')) {
+                result.comment = '';
+            }
+
+            return result;
+        },
+        setValue: function(value_el, new_value) {
+            var json = JSON.stringify(new_value);
+            $(value_el).val(json);
+        }
+    }
+
+    module.init();
 }).call(this);