Yes, you would pay the tax on earnings, but you don't know what they are yet, so for now you are reporting the amount of your Excess Contribution as 'Other Income'.
You may receive two 1099-R's eventually. One may show the Excess Contribution amount (which you can save for your records, since you already reported it).
The other will report Earnings, which you will enter in TurboTax and pay tax on.
Click this link for more info on Excess 401K Contributions.
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