Linear mixed models (LMMs) are a powerful and established tool for studying genotype-phenotype relationships. A limiting assumption of LMMs is that the residuals are Gaussian distributed, a requirement that rarely holds in practice. Violations of this assumption can lead to false conclusions and losses in power, and hence it is common practice to pre-process the phenotypic values to make them Gaussian, for instance by applying logarithmic or other non-linear transformations. Unfortunately, different phenotypes require different specific transformations, and choosing a good transformation is in general challenging and subjective. Here, we present an extension of the LMM that estimates an optimal transformation from the observed data. In extensive simulations and applications to real data from human, mouse and yeast we show that using such optimal transformations lead to increased power in genome-wide association studies and higher accuracy in heritability estimates and phenotype predictions.
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