6 Ways to Spend your Tax Return on your Home
If you happen to get a tax refund check from your state government or Uncle Sam, you have a great opportunity to invest it in home improvements and increase the equity in your home. In a collaboration between several research teams including REALTOR Magazine and the National Association of REALTORS, Here are some projects that give the most bang for your buck:
Replace the Front Door
Adding a sleek-looking, new front door can boost your homes curb appeal, as well as improve its insulation while toughening up its security. Buying and installing a new steel entry door costs $1,162 and has a return-on-investment (ROI) of 96.6%.
Add a Deck
Deck additions now have the best ROI since 2007. A 16-by-20-foot wood deck addition will run you about $9,540 but will return about 87.4% of its cost after resale. If you already have a deck, you could add some extras, such as an outdoor fireplace.
Add a Bed and Bath to Your Attic
An extra bedroom can substantially increase your home’s value. So while it’s not cheap—turning an attic into a 15-by-15-foot bedroom with a 5-by-7-foot bathroom with shower will cost, on average, about $49,400—you can expect a decent ROI of 84%. If you choose to forgo the bathroom, the job will be cheaper but the ROI may not be as high, since there is value in not having to go downstairs for a bathroom (The report doesn’t offer a cost vs. value analysis without it).
Replace the Garage Door
Replacing that rickety garage door with a smooth-moving, modernized one is an inexpensive addition with an average cost of about $1,530 and an estimated ROI of 83.7%. While the garage might not rank high on your list of things to fix, 
remember that more than three out of every four homebuyers purchase a home with a garage.
Tweak Your Kitchen
Kitchen remodeling is predicted to be the most common renovation that homemakers will decide to make in 2014. However, you don’t need to do a full-blown kitchen redo for a solid investment. Leave the old cabinets but replace the doors and drawers; pop in some new energy-efficient appliances; and install a new, modestly priced sink. Replace old countertops, touch up the paint and fix cracked flooring. The cost for this type of mid-range remodeling is $18,856, and is estimated to have an ROI of 82.7%.
Replace Windows
Not only can replacing windows earn a solid ROI, you can also cut down on your heating and cooling bills and earn energy tax credits with energy-efficient models. The cost to replace 10 standard windows with insulated wood replacements is about $10,900, with a 79.3% ROI, according to the Cost Vs. Value report. If you’re going with vinyl windows, the job will cost about $9,980 and has an estimated ROI of 78.7%.