Best Methods To Invest This Year's Tax Refund Back Into Your House  

by Pool Builders on 12-21-2013 in Articles

During the next few months, tens of millions of refund checks will be delivered to Americans of all stripes: dual-income households with three children, the small business owner with 2 mortgages and college tuition payments, the single parent that saw in the housing market the first opportunity to purchase a house. Depending on whether or not you believe opinion polls or retail sales figures, the typical taxpayer will use this money to pay down financial debt or go on a shopping spree, yet many home improvements combine a solid financial investment with personal pleasure.

ServiceMagic-- leading on-line resource connecting homeowners to home improvement contractors-- tracks project costs through comments given from real homeowners that have carried out actual projects. Though a few industry sources quote estimates from projects of "average" design, these types of numbers demonstrate project expenses from homeowners and contractors working within a budget just like yours.

Households with a $2,500 Refund
Early statistics from the IRS indicate the normal refund right now is closer to $2,600, although the number normally decreases as the date gets closer to April 15th (taxpayers that know they're receiving a refund often tend to file early). In the event that you tend to fall into this particular category and got a similar amount last year, here are some ideas in order to put that money back into your house.

Install a Hot Tub ($2,067): Obviously, you can spend a lot with an extravagant, bells-and-whistles hot tub, however if you're only trying to find a way to create an enjoyable soak at the end of a hard day, the price for a hot tub installation can be easily covered by the normal refund.

Solar Water Heater ($2,475): These types of systems will certainly cut down on your month-to-month bills, supply hot water for your house and/or swimming pool, and help the country work toward sustainable energy consumption. If the system provides 50 percent of your water heating, isn't used for hot tubs or swimming pools, and is certified by the Solar Rating and Certification Corporation (SRCC), the federal will effectively pay for 30 percent of this cost with a green tax credit.

Households with a $6,000 Refund
This particular household uses their tax refund as a yearly "savings plan." Although dollar-for-dollar, accountants are going to tell you doing this is a mistake, when it comes to numerous people-- especially employees without a 401k retirement plan-- the IRS can serve as a clever means to build up savings. Intentionally having additional taxes withheld on your W-4, for instance failing to declare dependents, is the most frequent means taxpayers create these types of refunds.

Rejuvenate Your Yard ($4,079): Hiring a landscaping company may not be your first thought whenever it pertains to your tax refund, nevertheless it delivers more punch than you think. Comprehensive services will get rid of a large item off your spring cleaning list as well as improve your home's curb appeal. Or, you can hire a company to install a single landscaping element. The typical expense for a custom-built pergola or trellis: $3,967.

Wood or Laminate Flooring ($5,106): There's nothing the same as the look, feel, smell, as well as longevity of hardwood flooring. For kitchens, living rooms, dining rooms, and bedrooms, countless wood species can enable you to accomplish a task well within this budget. Assuming that you have a larger flooring project in mind or can not justify the expense of genuine hardwood flooring, the ordinary laminate flooring project cost $3,899.

Households with a $10,000 Refund
This year among the most common means to receive a refund of this magnitude is through the $8,000 first-time, home-buyer tax credit. (The IRS announced on Feb. 25th that homeowners who have already bought a house this year are able to benefit from the credit on their 2008 returns.) Combined with the typical refund all of these Americans were already receiving, a $10,000 refund is on the way for thousands of brand-new homeowners.

Build a Deck or Porch ($7,572): The personal advantage of a deck or porch makes this an easy sell. Decks and porches additionally allow for incredible flexibility in price and style. Work with a contractor so as to match your budget and desired utility. Invest a little more money for composite decking and you will be able to reduce the upkeep to a minimum.

Bathroom Remodel ($9,712): Still one of the most reliable undertakings when it comes to value, if you're planning to quickly update an area of a recently bought house, this is a terrific place to start. As part of the first-time, home-buyer tax credit, you must stay in the house for a minimum of three years, therefore the promise of future property values makes this project a sound investment, in any event.

Tips for Small and Zero Refunds
First, congratulations, if you stuck your excess income into an interest-bearing account; you've made a smart choice, although it might not feel like it this time of year. In the event that you've managed to secure a small refund, there might still be beneficial jobs to choose from. As opposed to hitting the hardware shop and dealing with wall anchors, you can have a professional surround sound system installed ($550), hire a handyman for the day ($481), install a garage door opener ($348), or hire a professional to open your pool this year ($334). Finally, if you've completed an energy-efficient upgrade in the past, you may be entitled to a green tax credit that you failed to claim. Even though, these credits didn't apply last year (2008), even insulation, doors, and roofs that were installed and complied with energy-efficient requirements during 2006-07 could allow you to amend a previous year's returns.

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