Yes, you will have to pay the 6% penalty for 2019 and 2020 since you didn't withdraw the excess contribution by December 31, 2020.
Since you withdrew the excess contribution after the 2019 due date it will be treated as a regular distribution (you didn't need to withdrawn the earnings). You Form 1099-R should have code J in box 7. Please make sure that you enter your net contributions in the follow-up questions:
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2021 on the "Enter Prior Year Roth IRA Contributions" screen (the net contribution will include any excess contribution not removed by the due date, in your case the $7,000 excess from 2019).
- Answer the remaining question.
No, you will not have a taxable income unless you withdrew more than your prior net contributions. If you did then your earnings will be taxable and subject to the 10% early withdrawal penalty if you are under 50 1/2.
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