om and Jennifer Hanks are married and filed a joint return. Tom is 49, and Jennifer is 45. They reside in 2223 N. Westshore Blvd., Tampa, F.L. 33607. Tom is a district sales manager for West Pharmaceutical Services, Inc, (WST) a manufacturer of packaging components and delivery systems for injectable drugs and healthcare products. Jennifer is self-employed business woman (sole proprietor of an unincorporated business). The Hanks have three children, Matt, 19, Ben, 15, and Rosario 5.

Jennifer has the following income and expenses from her business (Schedule C) in 2019:

Gross income $218,000

Business expenses (before self-employment taxes) $178,000

Records related to Toms employment provide the following information:

Salary $195,000

Unreimbursed travel expenses 8,450

Other pertinent information for the tax includes the following:

Proceeds from sale of stock acquired on March 05, 2019

(cost of $10,985) sold on July 29, 2019 $ 8,335

Proceeds from sale of stock acquired on January 06, 2019

(cost of $4,530) sold on July 29, 2019 $ 2,530

Proceeds from sale of stock acquired on May 16, 2018

(cost of $3,650) sold on July 29, 2019 $ 2,750

Interest income from the State of Florida $ 900

Interest income from investments $ 9,000

Contributions to Tom Hanks traditional IRA $ 6,000

Contributions to Jennifer Hanks traditional IRA $ 6,000

Charitable contributions $ 3,500

Health insurance premiums (paid by Tom) $ 8,220

Unreimbursed medical expenses $ 11,386

Mortgage interests $ 17,350

Property taxes $ 10,550

Federal income tax withheld $ 39,450

Additional payments of estimated Federal income tax $ 10,050

1. Compute AGI, and total tax payable or refund due to Tom and Jennifer Hanks for 2019. Show proper calculations.
2. How much is the maximum amount that Jennifer can contribute to a Keogh retirement plan? Provide an explanation supporting your answer.