The 10% that was withheld was all applied to your 2020 tax return, but the tax is being spread over 3 years. So, you reported $12K on your 2020 return and will do the same this year (2021) and on next year's tax return, 2022. If you recontributed $11K, it is excluded from income leaving the $1K to be reported as taxable this year. If you re-contribute more than $12K, you would report no distribution income on this return and you can file an amended 2020 for the excess amount to lower your tax on the previous year's return.
No, there was no 10% penalty on qualified covid distributions (up to $100K) in 2020. That section is not ready in TurboTax yet; but it should be soon.
What is Form 8915-F Qualified 2021 Disaster Retirement Plan Distributions and Repayments?
The CARES Act also provides that any part of a COVID-19-related distribution is eligible for tax-free rollover treatment to be recontributed to a qualified plan within three years of receipt and therefore excluded from income. Any amount recontributed is treated as a direct tax-free rollover where eligible or as an indirect rollover with the typical 60-day requirement adjusted to three years. A recontribution is not subject to the one-rollover-per-year limitation.
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