How to Use Your Tax Return to Improve Your Home

If you are one of the lucky Americans waiting on a tax refund, you can take that money, invest it in your home, and parlay that refund into a great deal of value. In 2017 about 119,853,012 refunds were issued. Making the most of your tax refund is easy when you invest it into home repairs, renovations, and upgrades. Follow these pro tips for making the most out of your refund, and consider handling some of these home improvement projects on your own to keep costs even lower.

Invest in Energy-Efficient Upgrades

Making energy upgrades to your home using your tax refund not only helps you save money year-round but it can be used as a tax write-off next year. In other words, investing in energy upgrades is a win-win-win situation. Energy upgrades can be as simple as investing in a new HVAC system. It is estimated that homeowners can save 20% to 50% on cooling costs by replacing their HVAC system or upgrading their current system. Even small fixes can have a huge impact on energy costs. For example, weatherizing your windows with caulking can help you save. Energy upgrades are a great place to put your tax refund dollars to work. You can get a nice credit on next year's taxes, you can save money on future energy bills, and you will add a great deal of value to your home.

Update Your Kitchen

The kitchen is the heart of the home. Putting some money into updating your kitchen can add about 16% in value to your house. Many homeowners make the choice to invest in new appliances using their tax refund. New Energy Star appliances use less energy than older appliances and of course, they add an upgraded look to your kitchen. Appliance searches over the last year have jumped by about 26%. Homeowners are taking energy efficiency more seriously than ever before. Investing in new kitchen appliances is a great way to use your tax refund.

Invest In Landscaping

For most Americans, a tax refund arrives just in time for the spring. Investing your refund dollars in the landscaping around your home will add about 12% to the resale value of your home. Upping your curb appeal is always a good idea. Of course, you also have the added benefit of having great outdoor spaces that you and your family can fully enjoy.

New Windows and Doors

New windows and doors are a great home renovation project that starts paying you back immediately. Upgrading to new windows and doors will save you energy, improve the aesthetics of your home, and keep outside noise outside. It is estimated that about 30% of energy losses are caused by old windows and doors. Imagine how much money you can save on energy costs.

You Don't Have to Make Grand Changes

What if your tax refund is on the low end? There are still upgrades you can make to your home with just a few hundred dollars. Paint can be inexpensive and have a big impact. A fresh coat of paint can transform any space and give your home some personality. Organization tools are also a great investment. Clean up the garage once and for all and create a space for all your tools. You can buy organizational gear for a few hundred dollars. Having everything in its place not only delivers a great aesthetic but it makes you feel good about your home as well.

Make the most of your tax refund by investing it in your home. If you play your cards right, you can easily double or triple the return on your investment. Save for that vacation and invest your refund instead.