"Need to remove excess and earnings before filing taxes."
No, you need to remove excess and earnings before converting to Roth.
You now have an excess contribution of $1,000 plus earning that you did not take out
HOWEVER,
if you brought the Traditional IRA balance to zero . the excess and the penalty should go away.
You will pay tax on the $1,000 plus earning due to the conversion with a basis of $6,500.
the $1,000 plus earnings is in the Roth via the back door.
There's no correction to be done next year.
@erick307
