You will include the distribution and earnings on your 2022 tax return since it was withdrawn after the due date of the 2020 tax return it is a regular distribution. You will get Form 1099-R for the distribution next year. For future references, when an excess contribution is withdrawn after the due date then you can leave the earnings in the account.
You will have a 6% penalty on your 2020 and 2021 tax returns. The penalty on your 2020 tax return will be automatically calculated when entering the excess IRA contributions under Deductions & Credits and you get the penalty waring.
For your 2021 tax return, you will go through the IRA contribution interview and enter your excess contribution from the prior year (verify it is correct if it got carried over):
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Continue until "Do You Have any Excess Roth Contributions" screen and answer "Yes"
- Verify/ Enter the amount on the "Enter Excess Contributions" screen
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