I don't see anything in TurboTax when I enter an item of negative other income that it prevents e-filing, but I don't know for sure. I do know that including Form 4852 prevents e-filing.
If I needed to do this myself, I would file Form 4852 and paper-file. This would give me plenty of space to provide explanation that only $200 of the returned contribution is taxable because the remaining $2,000 of the distribution is not deducted on this tax return as part of the self-employed retirement deduction and that it does not need to be added back to wages because the excess contribution was not the result of an elective deferral made through an employer who reported wages in box 1 of a Form W-2 reduced by the amount of the elective deferrals. (That's bit run-on. It could be cleaned up.)
