If that's the online version of TurboTax, perhaps it behaves differently than the CD/download version that I used for testing. Generally, when there is a corrected Form 1099-R showing that no distribution actually occurred, neither the corrected form nor the original form being corrected should be entered. It's not until I click Continue on the page that the CD/download version where I select the federal and state tax returns to be e-filed does TurboTax present the message that the tax return contains forms that cannot be e-filed. (It's odd that TurboTax even does that because Forms 1099-R with no tax withholding shown don't get included in the e-filing anyway.)
