When we got our tax refund last March, we put my portion toward our mortgage debt and my husband's portion toward our California vacation. Both money well spent. This year we're spending all of it (plus a little more) on new floors for our upstairs.
In less trafficked places the carpet still looks decent. But the hallway and our bedroom look particularly worn - and of course the corners, which Monkey tore up her first two months here rather than one of the scratching posts.
We really love the hardwood floors we have downstairs so that was our first thought for upstairs. It would be cheaper to replace the carpet (about half the price) but the tax refund made us more willing to pay the extra. Plus the hardwood should last much longer than carpet ever would and I think it's easier to keep clean (especially for our family members with allergies).
The installation should be an interesting process with three cats in the mix! We're very excited for the end result though :)
What kind of floors do you have?