Before Andrew answers let me chip in: it does't matter how much moonlighting income you received in order to deduct business expenses. BTW your income was reported to you on a 1099-MISC, as opposed to a W-2, right?

You'll need to be very careful w.r.t. the computer, since it's a type of "listed property" which is complicated when it comes to depreciation or Section 179 deduction. My understanding is you need to keep a *daily* log of how you use the computer, i.e., for business (moonlighting) vs. for personal (e.g., personal e-mailing, web surfing, video gaming, watching online videos or downloading MP3s).

The license renewal cost is definitely deductible. Not sure about the family insurance premiums... if it's for your family my guess is it's not deductible to you as a business expense.

Andrew's mainsite www.mdtaxes.com has a list of moonlighting expenses you can deduct. Just look for it on the homepage.

Here's the page:
http://www.mdtaxes.com/mdbusexp.html

thanks chris - and yes the income was on a 1099 misc, the insurance was what I had to purchase for myself and family as I was not covered by my employer until 3 months into my new job. last year when I was between jobs I was moonlighting as well and bought my own health insurance. I was able to deduct it then since I wasn't even employed anywhere else, but this year it is a little different since I was employed and moonlighting at the same time. The health insurance premiums are on the list from the link you sent me.

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