Q. I have about 7 bills related to implants and crown, do I need to submit these with my TurboTax online return?
A. No. "Proof" only comes later, if you are "audited" and that's highly unlikely.
Q. I’m guessing TT will insert the numbers for me somewhere, somehow.
A. Yes. TT will prepare form 5329 to claim the penalty exception and put the taxable amount of the 1099-R on line 4b of form 1040.
If you aren't required to file a 2021 income tax return, because your income is too low, you can complete and file Form 5329 by itself, to document the penalty exception. The form has to be mailed, when filed alone, it cannot be e-filed. You only need to do Part I, so you should be able to do it by hand. https://www.irs.gov/pub/irs-pdf/f5329.pdf
You have to take the IRA hardship withdrawal during the same calendar year that you paid your medical bills. In addition, there is a 7.5% of AGI threshold (your AGI most likely is $3000). This essentially means you needed +/- $3225 of medical expenses for a $3000 IRA distribution to be totally penalty free.
