If it appears that you’re eligible for EIC for tax year 2021, according to the Earned Income Credit Worksheet (CP 27), You should fill it out and mail it as requested in the IRS’ letter.
Since the form only addresses eligibility for the credit, as opposed to the computation of the credit, you should also attach a letter asking the IRS to use the earned income from whichever year – 2019 or 2021 – will result in a higher EIC amount for you.
You can also compute the EIC amount yourself to include an amount in your letter, using the instructions at Lines 27a, 27b, and 27c—Earned Income Credit (EIC) in the 2021 Instruction 1040, but it’s a pretty complicated calculation.
Or, you could also go into the TurboTax program and start an amended return using both 2019 and 2021 earned income to see if you could come up with the EIC amount yourself, but you don’t want to actually file an amended return, since the letter doesn’t ask you to do that.
Please see the IRS’ Understanding Your CP27 Notice for more information.
