"is the $1,035 deduction accurate?"
It depends - did your client actually contribute $1,035 directly to the HSA, bypassing his/her employer? If so, it is correct. If not, then there should not be a $1,035 on form 8889, for all that it is the difference between the annual HSA contribution limit for Single HDHP coverage and the code W amount in box 12 on the W-2.
If this were an actual direct contribution, the $1,035 would appear on line 2 of form 8889 as well as on line 12 of Schedule 1 (1040).
As Annette pointed out, the code DD amount is the sum of the premium payments by the employer and the employee through payroll deduction towards the HDHP policy.
I find it a remarkable coincidence that the code DD amount just happened to be the same of the difference between the code W amount and the annual HSA contribution limit.
In fact, it is somewhat unbelievable. I am not up on current pricing for HDHP policies, but that amount seems rather cheap - so cheap, in fact, that I question whether the W-2 box 12 amounts were correctly entered by the employer.
Before you go any farther down this road, I suggest you ask the employee to confirm with his/her employer that the dollar amounts in box 12 conform to the definitions as given in the IRS W-2/W-3 Instructions.
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