Yes, the earnings are taxable in 2020 and therefore can create a new excess contribution. You will have to pay the 6% penalty on this new excess contribution in 2020 and 2021 since it wasn't removed by December 31, 2021.
You can avoid the 6% penalty for 2022 by making a regular distribution (without earnings and losses) since it is after the due date of the 2020 tax return. You will enter this distribution on your 2022 tax return when you get the 2022 Form 1099-R next year.
To pay the 6% penalty for 2021:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the new excess contribution from 2020
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