It’s still early in the tax return game, but CNN notes that so far, the average refund for the 2014 tax year is a whopping $3,539. Granted, refunds are usually higher earlier on in the year because those who know they are going to get a pretty good chunk of change don’t tend to dilly dally on filing their returns. But regardless of whether you get a check for thousands or hundreds from the federal government, you will have the pleasant task of deciding how to spend it.
While you might be tempted to take a dream vacation with your family or update your electronic devices with the latest and greatest laptops and tablets, a better option might be to invest your tax refund into your home. The following three home improvements are all more than worthy of your tax refund!
Upgrade Your Kitchen or Bathroom
Sometimes, when you are deciding which type of home improvement is best to tackle first, it is a good idea to think about what type of project will yield the biggest return if and when you sell your home. Even if you have no immediate plans to move, it’s best to sink your hard-earned money into improvements that not only look great, but are a wise investment. As HGTV notes, kitchen and bath remodels are typically at the top of this list, usually returning at least 100 percent of the cost to homeowners. In terms of how to spend your tax refund in one or both of these rooms, think upgrades like stone floors and countertops, walk-in showers in place of old tired tubs, beautiful new cabinets made from solid wood, and/or backsplashes made from glass and other lovely materials.
Consider a New Roof
You can invest in all sorts of fantastic home improvements, but if they are getting dripped on during a rain storm because of a leaky roof, all of your hard work will be for naught. Before you take on any interior projects, make sure that the frame of your home is nice and sturdy. For example, if it’s been decades since your home has had an updated roof, consider investing your tax refund into a new one and enjoy the peace of mind from having a sturdy roof over your head.
Replace Old Appliances
Another great way to spend your tax refund check is by replacing your old energy-inefficient appliances with snazzy new models that look fabulous and use less power. As The Huffington Post notes, replacing ancient fridges and dinged up dishwashers with models that are Energy Star-rated will typically allow you to recoup your cost over time. The Energy Star website is a wonderful resource that will help you determine which types of appliances use the least power. As a bonus, if you donate your old appliances, you may qualify for a tax write off on next year’s tax season; which will be here before you know it.