1. Correct.
2. No. Only the earnings are taxable, so only the earnings appear in Form 1040X line 1 column B. If you previously reported the excess Roth IRA contribution on 2018 Form 5329 Part IV, Form 1040X line 10 will reflect the elimination of the excess-contribution penalty and you'll include an updated Form 5329 Part IV to show that the penalty is now zero instead of what was reported on your originally filed Form 5329. If you were under age 59½ at the time of the return of contribution distribution, Form 1040X line 10 will show an increase by 10% of the earnings and you'll include Form 5329 Part I to show the earnings on line 1 and calculate the 10% early-distribution penalty on the earnings.
