Excess Contribution to Simple IRA

You will get a form 1099-R in 2022 reporting the distribution. You could wait until then to record the earnings on the distribution, but that will entail amending your 2020 tax return. You can report it on your 2020 return now if you know what the income earned on the funds is.

To report the earnings on the contribution in 2020, you should enter a Substitute form 1099-R and enter it on your 2020 return. You will see an option for this when you see the screen Tell us Which 1099-R You Have. 

Enter in box 1 the distribution amount.  In box 2 enter the earnings. Enter code "8" in box 7.