There is also the other direction — because of money I've spent on an illustrator for my wife's kids books (oh, and a website — www.caitlynsadventures.com) we can earn money at our current rate for YEARS and not turn a profit, allowing us to claim this whole writing gig as a "hobby." The IRS allows losses in a hobby to make up for any silly little income you might make, keeping in mind that should you actually end up in the black some day, they want their cut of your profits.