Box 12 Code DD has nothing to do with the Health Savings Account. Code DD is the cost of employer-sponsored health coverage.
Box 12 Code W reports company contributions (including employee contributions) to the Health Savings Account. This amount should be reported on Form 8889 as a contribution to the HSA, but it should not be shown on Form 1040 Schedule 1 line 12 as a deduction. Employer contributions to the HSA are pre-tax and not deductible on the tax return.
If the W-2 indicates that $2465 has code W in box 12, then Form 8889 is showing that an additional $1035 can be contributed to the HSA before the due date of the return and taken as a deduction on Form 1040 Schedule 1 line 12.
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