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Thank you @BillM223 !

You explanation is quite clear. I still have the question regarding my withdrawal of 3550 for 2020.

1. This is the form I filled in Jan 2021 to withdraw the 2020 excess contribution, and it did say it will be counted to 2021 contribution

2. In HSA website contribution history page, it does say I have an individual contribution of 1980.21 (2000 minus the 20 fee, plus the 21 cents interest). Can I really ignore it as 2021 contribution?

3. I know 5498 form is just informational, but it does say the sam amount as the screenshot in #2.

So now the question is:

1. If I should acknowledge the 3550 withdraw for year 2020 that I mean to carryover to 2021 as 2021 contribution? If so then my excess contribution would be 3340+3550, which is large than the 5610 withdraw, so I don't have the over withdraw problem, and just need to withdraw some more to balance it

2. If I could just ignore the 3550 as contribution? If so, I will face the over withdraw, that I will probably need to talk to HSA as you suggested. And where to tell Turbotax that I have withdraw 5610, so that it will know I have over withdraw, and tell IRS I owe 20% penalty?

Or maybe the question is: If IRS knows the 3550 as contribution to 2021?