Form 5329 line 11 uses IRA distributions included in income to offset excess contributions. My RMD is included in income. Does my RMD offset my excess contribution?

For what year did you make the excess contribution?

No.   If you are age 70 1/2 you cannot make any Traditional IRA contributions at all.  The excess contribution must be removed separate from any RMD.  You should tell the IRA custodian that it is a return of excess contribution so they will issue a 1099-R with the proper code in box 7.