Yes, and legally, you should claim all eligible business expenses along with all income. In general, this does not cause problems; however, if you consistently have losses (3 years or more, for example), then the IRS could come back and consider this a hobby instead of a business and disallow the loss(es) claimed. For hobby income (without a clear profit intent), then you can only deduct your expenses up to the income as an itemized deduction (and reduced by 2% of your adjusted gross income).
