An excess must be returned as a "return of contribution" and not a normal distribute. For a return of contribution, the account trustee is required to calculate the earnings attributed to the excess and report that in box 2a on a 1099-R form with a code JP in box 7 is this was a contribution for 2018 returned in 2019 or a code J8 if a 2019 contribution. Only the earnings, if any would be taxable.
If a 2019 contribution you can ask the financial institution if they would cancel the 1099-R and change it to a return of excess contribution (most financial institutions will not do that) so you are stuck with reporting the $780 as an excess on your 2019 tax return and paying the 6% penalty ($47). By paying the penalty, there is no need to worry about the earnings and they can remain in the IRA.
The 2019 1099-R that you received will not be taxable since is is your own contribution (TurboTax will ask for prior contributions).
That might be the simplest way to do it, just pay the $47 and be done with it.
However, I do not think you said which year the contribution was for. If this was a contribution *for* 2018, then it had to be removed before the due date of the 2018 tax return (Apr 15, 2019) to avoid a 2018 6% penalty and a normal distribution like you did is the only way to remove it.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
