16 smart things to do with your tax refund

Truth be told, you're better off not getting a tax refund. That money going back to you means that the government took too much from your paycheck, eliminating your opportunity to spend, invest, or earn interest on that extra cash. So you need to adjust your withholding. Calculate the proper amount of witholding using the IRS' withholding calculator.

Still, since a tax refund is commonly seen as a windfall, we offer our suggestions for what to do with a refund. The average federal refund this year will exceed $3,000, but our refund recommendations range from free to pricey.

For your home

Paint your interior. Use one of the high-scoring paints in our Ratings—some of the best finishes cost only $20 a gallon.

Create the right mood. Top-rated LEDs continue to come down in price, and some top models we tested cost only $10.

Update your landscape. Pruning an overgrown landscape with a selective removal of plants can make a yard feel more organized, and clear the way for new plantings. Perennials tend to be less expensive than annuals and fill the yard with seasonal color and blooms. Read more about how to fix the 5 most common lawn problems, and other lawn care tips.

Get a new refrigerator. If you love seltzer and your current fridge is on the fritz, you might consider putting your tax refund toward the Samsung RF31FMESBSR French-door refrigerator ($2,900), which has a built-in SodaStream sparkling-water-dispenser. Check our refrigerator buying guide and Ratings.

Set up a new gas grill. It's the right time of year to get your grill on with a new gas grill that comes with handy features. We've also sized up the best and worst grills for you to make the decision that much easier.

For your car

Upgrade your tires. New tires can make a measurable improvement in your car's performance and safety. When looking for new tires, focus on tires that do well in our tests for braking, handling, and resistance to hydroplaning.

Find a GPS navigator. You can get many of the same functions that the infotainment systems in new cars have by picking up a portable GPS navigator. Basic units priced at $100 and up from Garmin, Magellan, and TomTom provide helpful turn-by-turn directions. For a bit more, you get free traffic information. At the high end, you'll find devices that add features such as a trip computer, Bluetooth capability, an MP3 player, and an FM transmitter.

For your tech interests

Capture it all. If you're using your refund for an action-packed vacation, you can immortalize your surfing, diving, and water-skiing adventures with an action camcorder. The GoPro Hero3+ Black Edition ($400) is our highest-rated action cam; the Silver Edition ($300) is a close second.