Money Fix: Tax Deductions

Originally published on Newsday, February 15, 2015.

Uncle Sam is more generous than you think. Here are some surprising or overlooked deductions that will keep a bit more cash in your pocket.

Money from moving: If you relocated due to a change in your job or business location, or because you started a new job or business, you may be able to deduct those expenses. "You must meet a number of tests based on start date, relative distance and time employed," says Al Colanero, senior tax manager at WeiserMazars LLP in Woodbury.

Work has rewards: You can deduct work-related expenses not reimbursed by your employer, including uniforms, if they exceed 2 percent of your adjusted gross income, says Jeffrey Hoops, assistant professor at LIU in Brookville.

Maximize medical expenses: There's a lot of latitude with medical expenses. You can deduct the cost of a hot tub if you have a prescription from your doctor as a medical necessity, says John Gregory, founder of 1040Return.com. The cost of laser eye surgery is allowed because the surgery "meaningfully promotes the proper function of the body."

Capitalize on camp: Your kids had a blast at camp. Good news: The Child and Dependent Care Tax Credit applies to qualifying day camp expenses -- up to $6,000 of dependent care expenses if you have two or more dependents (up to $3,000 for one dependent).

Money management pays off: If you subscribed to an investment newsletter, paid a financial adviser to review your retirement plan or had an attorney prepare a living will or trust, you can deduct these expenses, says Michael Atias, tax director at Online Trading Academy in Irvine, California.

Over 100,000 Lessons from the Pros readers. Check out last week's issue.

Free Class