According to the IRS, more than $204 billion, 13.4% more than last year, is being refunded to taxpayers this tax season. What to do with all that money? We have some ideas for you. Recent events have provided an opportunity for many to rediscover the comfort of their homes. Home improvement numbers soared. Why not use your return to jump on the bandwagon?

You may be struggling to decide how to spend your return wisely. After all, you’ll only receive one return this year. Here are some home improvement projects to consider using funds from your tax return. Some are more practical than others, but all of them will increase either the value, appeal, function or comfort of your home.

Some homeowners might choose one of the top remodeling trends for 2022, many of which focus much attention on health and well-being and caring for your home as the most appropriate way to spend their return. Others may choose an inexpensive renovation to stretch their return cash as far as possible.

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Projects That Add Resale Value

Invest your tax return in home improvement. Projects that add resale value are home renovations that can provide a strong return on your investment by increasing the value of your home. Much of the remodeling cost can be recovered when you sell your house. You can realize even more benefits by finding ways to save money while remodeling and increasing the ROI even more.

Housing markets and trends change rapidly. Before committing to one project over another, it’s a good idea to talk to a realty professional to get a handle on what renovations are hot in your area. Often at the top of ROI lists are the following projects.

  • Entry door replacement
  • Garage door replacement
  • Kitchen remodels, big or small
  • Bathroom remodeling
  • Refinishing hardwood floors
  • Upgrading existing flooring
  • Add an attic or basement bedroom
  • Finish the basement

Projects That Improve the Look of Your Home

Of course, we’d all like our home to look its best all the time. Your tax return may be just the opportunity you were looking for to spruce things up indoors or give your home’s curb appeal a boost. Here are some projects that your return may cover the cost of, or it could make a substantial deposit.

  • Landscape the yard
  • Paint the interior or exterior
  • Install new siding
  • Add a stone or brick veneer to the front of the house
  • Add planter boxes and flowers
  • Replace concrete walks with pavers
  • Replace kitchen sink and faucet
  • Upgrade bathroom fixtures

Projects That Increase Energy Efficiency

To extend the value of your tax return, invest it into a project that increases your home’s energy efficiency. The money you spend on these projects will slowly make its way back into your budget by lowering your monthly energy bills.

  • Upgrade furnace and air conditioner to high-efficiency models
  • Install attic insulation
  • Install a tankless water heater
  • Replace old, leaky or inefficient windows
  • Replace old appliances with Energy Star rated ones
  • Install solar panels or other renewable energy solution

Almost Purely Practical Projects

If you’re looking for the most practical way to spend the money on your home, here are some low-cost projects that just make sense, along with a couple that may have to get done sometime anyway.

  • Install or replace a garage door opener
  • Add a security system to your home
  • Upgrade your home office
  • Replace worn deck boards with composite decking
  • Install a new roof
  • Seal, repair or replace an asphalt driveway
  • Repair sidewalk concrete

Projects With a Purpose

Getting money to work for you doesn’t always require investment knowledge. Improve the functionality of your home by pursuing one of these projects with your tax money.

  • Add garage storage
  • Build a shed
  • Install a kitchen pantry
  • Replace or upgrade kitchen cabinets
  • Add a storage bench to your entryway

Projects Just for Fun

Perhaps the thought of spending your return on practical stuff or as an investment comes in second behind spending it just for fun. Here are some ideas to get you thinking. There are many more possibilities.

  • Create an outdoor kitchen
  • Install a deck
  • Install a ground-level patio
  • Add a fire pit to the backyard
  • Install an above-ground pool
  • Create a garden

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