Though tax season can be stressful, deciding how to spend your refund shouldn’t be. According to the IRS, the average American gets about $3,100 back from their taxes. While many use this money to pay for family vacations or eliminate credit card debt, homeowners should consider putting this money back into their most important asset: their house. Here are six ways to spend your tax return on your home:
Update What’s Beneath Your Feet
For many homeowners, flooring is an all-or-nothing project. But small investments can make a big difference. Invest in a deep clean of the family room carpet, replace area rugs in the bedrooms, or splurge on sustainable bamboo floors in the hall.
Shed Some Light
Adding light to a space can revitalize a whole room. Replace dated fixtures with stylish lamps, or add a skylight or suntube to increase natural light. You may update exterior lights as well: motion sensing or solar powered lights can improve safety and reduce your energy bill.
Make a Great First Impression
Replacing your front door, refinishing (or repaving) your driveway, or adding lighting along steps will do more than increase your curb appeal. These projects will also add to the value of your home.
Show Your Kitchen Some Love
While your tax return may not pay for a new kitchen, it could pay for some dramatic updates. If your kitchen feels outdated, refinish your cabinets or replace your countertops. You could also install a trash compactor or update small appliances, such as the coffeemaker, toaster, and microwave.
Refurbish Your Bathroom
Start by replacing outdated or faulty faucets, and take it from there. Your bathmats, shower curtains, vanity, and mirror can be replaced within the budget of the average American tax return. Upgrade to high efficiency faucets to save on monthly water bills.
Perhaps the most fun way to spend your tax return on your home is to upgrade to smart home technology! This comes in the form of a smart thermostat, security system, or a smart speaker. Different technologies fit different lifestyles and budgets, and you can choose what works best for you.