To exempt a full $1,000, at least $1,000 would have to have been taken as a single distribution. Only one distribution per year is eligible for this exception to the early-distribution penalty. For example, if multiple distributions were taken and the largest of those distributions was $600, only $600 would qualify for this exception to the early-distribution penalty.
Note that during entry TurboTax does not enforce the $1,000 limit, so you yourself must limit the amount on which you claim this exception to no more than $1,000, otherwise TurboTax will later flag the entry as an error that you will need to correct.
