‘‘(g) INFLATION ADJUSTMENTS.— 
‘‘(1) 
CREDIT
AND
HEALTH
INSURANCE 
AMOUNTS.—In the case of any taxable year begin-
ning after 2006, each dollar amount referred to in 
subsections (b)(1)(B), (b)(2)(A), (d)(3)(B), and 
(d)(4)(C)(iii)(I) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 213(d)(10)(B)(ii) for the 
calendar year in which the taxable year begins, 
determined by substituting ‘2005’ for ‘1996’ in 
subclause (II) thereof. 
If any amount as adjusted under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10. 
‘‘(2) INCOME
PHASEOUT
AMOUNTS.—In the 
case of any taxable year beginning after 2006, each 
dollar amount referred to in paragraph (3) and (4) 
of subsection (b) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2005’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the preceding sen-
tence is not a multiple of $50, such amount shall be 
rounded to the next lowest multiple of $50. 
‘‘(h) SPECIAL RULES.— 
‘‘(1) COORDINATION WITH MEDICAL EXPENSE 
DEDUCTION AND DEDUCTION FOR PREMIUMS FOR 
HIGH
DEDUCTIBLE
HEALTH
PLANS.—The amount 
which would (but for this paragraph) be taken into 
account by the taxpayer under section 213 or 224 
for the taxable year shall be reduced by the credit 
(if any) allowed by this section to the taxpayer for 
such year. 
‘‘(2) COORDINATION
WITH
DEDUCTION
FOR 
HEALTH INSURANCE COSTS OF SELF-EMPLOYED IN-
DIVIDUALS.—No credit shall be allowable under this 
section for a taxable year if a deduction is allowed 
under section 162(l) for the taxable year. 
‘‘(3) COORDINATION
WITH
ADVANCE
PAY-
MENT.—Rules similar to the rules of section 
35(g)(1) shall apply to any credit to which this sec-
tion applies.
‘‘(4) COORDINATION WITH SECTION 35.—If a 
taxpayer is eligible for the credit allowed under this 
section and section 35 for any month, the taxpayer 
shall elect which credit is to be allowed with respect 
to such month. 
‘‘(i) EXPENSES MUST BE SUBSTANTIATED.—A pay-
ment for insurance to which subsection (a) applies may 
be taken into account under this section only if the tax-
payer substantiates such payment in such form as the Sec-
retary may prescribe. 
‘‘(j) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pur-
poses of this section.’’. 
(b) INFORMATION REPORTING.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 (relating to information concerning 
transactions with other persons) is amended by in-
serting after section 6050T the following: 
‘‘SEC. 6050U. RETURNS RELATING TO PAYMENTS FOR 
QUALIFIED HEALTH INSURANCE. 
‘‘(a) IN GENERAL.—Any person who, in connection 
with a trade or business conducted by such person, re-
ceives payments during any calendar year from any indi-
vidual for coverage of such individual or any other indi-
vidual under creditable health insurance, shall make the 
return described in subsection (b) (at such time as the 
Secretary may by regulations prescribe) with respect to 
each individual from whom such payments were received. 
‘‘(b) FORM AND MANNER OF RETURNS.—A return 
is described in this subsection if such return— 
‘‘(1) is in such form as the Secretary may pre-
scribe, and 
‘‘(2) contains— 
‘‘(A) the name, address, and TIN of the 
individual from whom payments described in 
subsection (a) were received, 
‘‘(B) the name, address, and TIN of each 
individual who was provided by such person 
with coverage under creditable health insurance 
by reason of such payments and the period of 
such coverage, 
‘‘(C) the aggregate amount of payments 
described in subsection (a), and 
‘‘(D) such other information as the Sec-
retary may reasonably prescribe. 
‘‘(c) CREDITABLE HEALTH INSURANCE.—For pur-
poses of this section, the term ‘creditable health insurance’ 
means qualified health insurance (as defined in section 
36A(d)).
‘‘(d) STATEMENTS TO BE FURNISHED TO INDIVID-
UALS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return under 
subsection (a) shall furnish to each individual whose name 
is required under subsection (b)(2)(A) to be set forth in 
such return a written statement showing— 
‘‘(1) the name and address of the person re-
quired to make such return and the phone number 
of the information contact for such person, 
‘‘(2) the aggregate amount of payments de-
scribed in subsection (a) received by the person re-
quired to make such return from the individual to 
whom the statement is required to be furnished, and 
‘‘(3) the information required under subsection 
(b)(2)(B) with respect to such payments. 
The written statement required under the preceding sen-
tence shall be furnished on or before January 31 of the 
year following the calendar year for which the return 
under subsection (a) is required to be made. 
‘‘(e) RETURNS WHICH WOULD BE REQUIRED TO BE 
MADE BY 2 OR MORE PERSONS.—Except to the extent 
provided in regulations prescribed by the Secretary, in the 
case of any amount received by any person on behalf of 
another person, only the person first receiving such