You probably already know this, but as soon as you get paid for your writing, you get to deduct all kinds of poetry-related expenses, some internet, some cell phone, books, poetry magazines. Is it that way in the USA?
Yes. If she's wiley enough, she could expense the gas it took to get to the poetry gathering, the hotel, the dinner etc.
...within limits. The IRS takes a dim view of anyone with a business that loses money hand over fist in that business for more than five years. But before they can take a dim view, they have to look. And they're suffering cutbacks like everyone else. And the odds of getting a random audit are pushing a thousand to one. And the odds of getting a non-random audit are suspiciously proportional to income. And even if you're audited the worst that happens is you have to give the money back. Don't you work for a bank?
You should probably set up an LLC for your poetry
In the UK: http://www.writersbureau.com/writing/what-writers-can-claim-against-tax.htm Claim. Claim, claim, claim: http://www.nolo.com/legal-encyclopedia/tax-deductions-writers.html And: http://www.gentlemenranters.com/60.html Probably much similar in the US.