In the case of taxable years beginning in calendar years after the first calendar year to which this section applies, the dollar amounts under subparagraph (A) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting the calendar year preceding the first calendar year to which section 224 applies for calendar year 1992 in subparagraph (B) thereof. (ii) Rounding If any increase under clause (i) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. (3) Yearly limitation The amount allowed as a deduction under subsection (a) for any taxable year shall not exceed the taxpayer’s earned income (as defined in section 32(c)(2)) for such taxable year. (c) Limitations and special rules relating to standard deduction For purposes of this section— (1) Special rule for married individuals filing separately In the case of a married individual who files a separate return for the taxable year, the deduction allowed under subsection (a) shall be equal to one-half of the amount which would otherwise be determined under subsection (a) if such individual filed a joint return for the taxable year. (2) Denial of deduction to dependents No deduction shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins. (3) Coordination with other health tax incentives (A) Denial of deduction if health insurance costs credit allowed No deduction shall be allowed under this section to any taxpayer if a credit is allowed to the taxpayer under section 35 for the taxable year. (B) Reduction for insurance purchased with msa or hsa funds The amount allowed as a deduction under subsection (a) for the taxable year shall be reduced by the aggregate amount— (i) paid during the