Thanks for all your help. After talking again to my HSA provider, Turbotax Community, reading tax regs, here is what it seems that I must do:
1) Have the Excess and the Earnings on the Excess removed before April 15, 2021. I must report both on the form that I send them before April 15. $800 + $118. This will prevent me from paying any penalty for the excess and excess earning.
2) Turbotax accurately captures the $800 excess and I will pay taxes on this in 2020.
3) Report the Earnings on the Excess $118 as Other Income on my 2021 tax filing.
Thanks.
