On average Americans earned back $3,000 on their yearly tax returns, according to the IRS.
Though it’s tempting to treat yourself to a fancy vacation or splurge on new technology, using your tax return on home improvements can actually make you more money in the long run. Reinvesting your tax return back into your home will increase your property’s overall value ––so if and when you’re ready to sell, they’ll be more than $3,000 back into your wallet!
And while you can’t write off residential home improvements on your year-end taxes ––these costs are nondeductible personal expenses — it doesn’t mean that home improvements don’t have a tax benefit. In fact, home improvements can help reduce the amount of overall taxes you have to pay when you decide to sell your home too!
So not only will using your tax refund add more overall value to your home, but it also means you’ll be paying fewer taxes on it when you sell. All in all, putting this money back into your property (instead of buying a new iPhone) is just a financially smart decision.
To help you decide what type of home improvements to make and how much each cost, we broke down some projects ideas with price points to better guide you!
$100 Tax Return
A Hamilton can get you far in the home improvement world! These low-cost home improvement projects can still add significant overall value to your home.
- Replace cabinet hardware and/or paint the cabinets
- Add new hardware to the exterior door and/or repaint the front door
- Deep clean all the tile and grout in your home
$500 Tax Return
Still on a budget but want to make more significant changes to your property? Using your $500 tax return on home improvement projects can still get you a long way ––without spending thousands.
- Add tile backslash in your kitchen and/or bathroom
- Repaint the entire interior and/or exterior of your homes
- Hire professionals to powerwash windows and sidewalks
$1,000 Tax Return
Putting down $1,000 of your return back into your home? You\'ll be able to take on bigger home projects.
- Add new tile to the bathroom floor and/or kitchen floors
- Replace any old or worn-in carpet
- Replace old kitchen appliances
$3,000 Tax Return
It might be scary investing your entire tax return back into your home. But as we already learned, your home's value will go up and you can make back that money (and more!) when you choose to sell.
- Add a back end and/or patio to your home and/or apartment unit
- Install new kitchen countertops
- Enhance