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 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.


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