Since you didn't withdraw your 2020 Excess HSA Contribution before tax filing deadline in 2021, as @Opus17 suggests, withdraw the excess amount in addition to what is needed for medical expenses.
The penalty on the carryover is 6% of the smaller of the carryover OR the balance in your HSA. So when your HSA balance goes to zero, then there will be no more penalty anyway.
The $34 will be added to 'Other Income' and assessed the 20% penalty.
Click this link for more info on Excess HSA Contribution.
[Edited 02/25/2022 6:06 pm]
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