Tax Refund Ideas for Your Next Home Remodel

When tax season rolls around, many Americans get refund checks from the government. If you’re one of those taxpayers, congrats – now you’ve got an extra cash bonus you can use however you like!

But what if you can’t decide what to spend your tax refund on? One idea for how to spend your tax refund is on a home renovation. Home renovations are amazing investments, and depending on how much you receive, your tax refund could be just what you need to finance lots of different home remodeling projects. If you’re looking for inspiration, look no further – contact our home remodeling experts at Window World of the Tri-Cities. Below, we’ll explore some great ways to spend your tax refund on home renovations below!

Why use your tax refund to renovate your home?

After you’ve filed your taxes, you can spend that extra money in several ways. For example, you can tuck it away into your emergency fund, or you can spend it on a family vacation to unwind and relax (maybe in a sunny, coastal resort!). But using your tax refund to fund home renovation costs has special benefits.

For starters, a home remodel you love is something you can appreciate and enjoy every single day. Unlike a vacation, you’ll reap the rewards of spending your tax refund on home upgrades in perpetuity.

Furthermore, using your tax refund to finance home renovations directly adds property value to your Tri-Cities house. That extra equity can pay dividends in the future if you ever decide to sell your house since you’ll be able to charge more for it from potential buyers.

In this sense, spending your tax refund to cover home renovation costs is an investment in the future of your property. It’s a great way to use the “extra” money you get from the government to set yourself up for a better financial position down the road.

What is the average home renovation cost?

Before you start buying home remodeling supplies or calling contractors, it’s a good idea to calculate your expected home renovation costs – and determine whether your tax refund will cover everything.

Different rooms and projects demand different monetary investments on your part. For instance, here’s a breakdown of the average costs you should expect when renovating specific rooms:

• Garage – $3,000-$15,000
• Bedroom – $10,000-$15,000
• Kitchen – $10,000-$50,000
• Bathroom – $9,000-$20,000
• Office – $5,000
• Living room – $5,000-$10,000

You can also estimate the price for specific remodeling projects with this list:

• Adding a deck or patio – $2,000-$11,000
• Installing a new roof – $20,000 or more
• Replacing house siding – $14,000 or more
• Replacing all the windows in your house – $8,500-$20,000

Generally, targeted upgrades or improvements are more affordable than full-room remodels. According to some sources, the average cost to renovate a kitchen from the ground up (including doing the plumbing, cabinets, and everything else) is $75,000, while adding a completely new room to your house costs $156,000 on average.

These price ranges are good starting points as you imagine the home renovation possibilities with your tax refund. If you get a $10,000 check from the government, for example, there are lots of different projects you can pursue! But if your refund is significantly lower, take a look at your savings and think carefully about how much you want to spend on upgrades.

Home remodel ideas for your tax refund

Once you’ve figured out your budget, you need to decide what exactly you’ll replace or enhance. The sky’s the limit, so it can be tough to settle on an inspiring idea. Check out these home renovation tax refund ideas to get your creativity going!

Redo the kitchen

It’s easy to spend a lot of time in the kitchen, so it might be a no-brainer to renovate this room before any of the others. Imagine how excellent your kitchen might look with a brand-new faucet, new cabinets, or a sparkling new refrigerator (complete with all the bells and whistles, of course).

You can also change the feel of your kitchen by knocking down walls, opening it up, or adding an island with a breakfast bar in the middle. A fully renovated kitchen can do a lot to make older homes feel modern and high-tech.

Give your dining room a facelift

Then there’s the dining room: a prime target for remodeling energies in many Tri-Cities homes! If you frequently eat dinner with your family in the dining room, spending some or all of your tax refund here could result in tangible improvements you get to enjoy every night.

Consider adding a decorative chandelier to the dining room, replacing carpet with hardwood floors, or installing a broad picture window in front of the dining room table. Few things are as peaceful (and great for your home’s curb appeal) as eating dinner while watching the sunset through a large, clear picture window.

Renovate the bathroom(s)

Bathrooms are popular choices for remodeled rooms, too. No one likes to take a shower in a cramped tub or stall, after all.

There are lots of things you can do to enhance the feel of one or more bathrooms, like replacing the sinks and countertops, installing a rainfall showerhead, or setting up a freestanding bathtub by casement windows: a perfect setup for soaking in a bubble bath while enjoying the fresh air.

Replace old windows

Windows are another stellar option for how to spend your tax refund. That’s because your windows have a huge impact on the overall comfort of your home.

Lots of old windows are drafty, foggy, or otherwise subpar. New, energy-efficient windows insulate your home, preventing your HVAC system from having to work double time just to keep your house comfortable in the summer or winter. Plus, modern windows can enhance your home’s curb appeal and give certain rooms extra functionality – imagine replacing a basic square window that can’t open in the living room with double-hung windows that can, for instance.

This is a good example of a home renovation upgrade that may pay for itself in the long run. As you save money on your utility bill thanks to your energy-efficient windows, you’ll save hundreds of dollars a year and eventually make back what you spent on this upgrade!

Get a new front door or garage door

If you want to focus on curb appeal, think about using your tax refund on a brand-new front door or garage door. First impressions count for a lot, both for frequent guests and prospective homebuyers, so swapping out an old front door with spotty paint for a new, elegant alternative could do wonders to boost property value and give you a jolt of satisfaction when you come home from work every day.

Invest in new appliances

You probably use several home appliances each day. Why not use your tax refund to make them energy efficient and easier to use?

Say that you have a finicky washer and dryer set, or maybe your dishwasher isn’t scrubbing the dishes clean like it should. You can replace these appliances with ENERGY STAR-certified models, saving money on your utility bill, doing your part for the planet, and making daily chores easier all at the same time. Plus, just like with other home enhancements, you can point out new appliances to future homebuyers and increase the asking price for your Tri-Cities property.

Add a back deck

If you’ve dreamed of having a little more space out back for socializing and barbecuing, your tax refund is the perfect opportunity to pursue that dream. Giving your backyard a deck expands your hosting opportunities and creates a great spot to sit and sip a cool drink on a hot summer day.

Let your front yard landscaping ideas run wild

You can alternatively turn your attention to the front of your property. Maybe your front yard is a bit basic or bland-looking, or maybe it needs some key features, like a path to your door from the street. A tax refund check could give you a chance to scatter beautiful flowers and other plants throughout your front yard, add a stone path, repaint the front fence, or redo your mailbox. Combine this with a new front door to massively improve its curb appeal.

Build a new home office

Lots of Americans work from home (partly or full-time), and if you’re one of them, it may make sense to use your tax refund to build or upgrade your home office. Convert a spare bedroom into an at-home office with a new window, space for a desk, and new carpeting – the next time you clock in for a remote shift, you’ll feel a lot better working in a comfortable space that adds to your energy instead of sapping it.

All in all, your tax refund could be a good opportunity to make your home look and feel like new and give it extra value for decades to come. But no matter which home renovation project you pick, remember that it’s always a good idea to call the experts for help choosing materials and tackling installation.

Window World of the Tri-Cities is the perfect resource for all things windows, doors, siding, and more. Our capable experts can help you with your upcoming window replacement, gutter installation, and many additional home remodeling projects.  Call 423-212-2573 today, request a free quote, or stop by our local showroom to explore your options!