Smart Ways to Spend Your Tax Refund on Your Home

Last Updated on January 21, 2020

Not sure what to do with your tax refund? Many homeowners consider their tax refunds to be “found money,” and some have it spent before they even receive it. With the average family receiving a tax refund of approximately $3,000, the urge to splurge can be their first reaction. Reinvesting your refund back into your home is a smart way to make improvements on your biggest asset, which can increase the return on your investment (ROI).

What to do with your tax refund

Since everyone will not be so lucky to receive a large tax refund, we’ve broken down some of the best home improvement options that can save you money in the long run, based on the amount of the refund.

Tax refund amount: $500

• Install a ceiling fan. This is an easy way to save on your energy bill all year long. It will pay for itself by keeping your home warmer in the winter and cooler in the summer.
• Have your fireplace or chimney professionally cleaned. It may not be the most exciting way to spend your tax refund, but a thorough cleaning can help keep your family safe by preventing a house fire.

Tax refund amount: $1,000

• Replace an aging appliance, such as a refrigerator, dishwasher or washing machine with an energy-efficient one. You’ll not only save money on your utility bill, but you’ll enjoy the updated look.
• Add to your landscaping. Increasing curb appeal goes a long way if you’re considering selling your house down the road. It’s also a unique reflection of your personality and how you like to present yourself to the neighborhood.
• Replace your front door. Not only can a new front door add to the ambiance of your home, it can help with insulation and improve the security of your home. It’s a great way to bring a touch of class to the entrance as you welcome family and friends into your home.
• Add a ventless fireplace. Create the warmth and coziness you always wanted in your home without the hassle of a chimney or flue.
• Paint a kitchen, bathroom or bedroom. Nothing lifts the spirits of a room like a fresh coat of paint. Choose one of today’s hottest colors to update a room, which in turn will bring a sense of renewal to your home.

Tax refund amount: $2,000

• Replace your old water heater or furnace with a new, energy-saving model. You may be eligible for energy tax credits on certain models.
• Inspect your roof and gutters. Replacing damaged shingles or roof tiles and cleaning out your gutters can help prevent roof leaks, which can lead to unwanted costly repairs.

Tax refund amount: $3,000 (or more)

• Renovate your kitchen or bathroom. Granite Transformations offers an extensive selection of gorgeous mosaic tile, quartz, recycled glass and granite countertops to suit even the savviest tastes. Updating the countertops in your kitchen or bath can transform your home and bring you the new look you’ve been yearning for. And as most renovations can be completed in one day and without demolition, you can start enjoying your tax refund before you know it.
• Paint your house. Whether you decide to paint the outside or inside of your home, a fresh coat of paint can change the look of your house with the stroke of a brush (or roller, whichever the case may be).
• Incorporate additional storage. Most homeowners would agree they don’t have enough closet space. Adding a closet to “dead space” can be one of the best home improvement investments to keep your home neat and organized. (Future homebuyers will love it, too.) And don’t forget the garage. Garage systems are a great way to keep all your seasonal items organized and out of the way, while making room for the things you use in your daily lifestyle.
• Polish your floors or clean your tile. Think of your floors as the palette of your home. Beautifully polished and buffed floors and clean tile make a lasting impression and give your home a well-kept feeling.

Whether you decide to use your tax refund on one large renovation project or several small ones, keep in mind when deciding what to do with your tax refund, choose the best projects that will bring you the most enjoyment and highest ROI.

Schedule your free in-home design consultation with Granite Transformations today.

References:
http://www.cbsnews.com/news/4-great-ways-to-use-your-tax-refund-at-home/
https://www.houselogic.com/remodel/invest-tax-refund-your-home-1000-projects/
http://www.realtor.com/advice/home-improvement/6-cost-effective-ways-use-tax-refund-home/