TurboTax is reporting it correctly. Your over-contribution reduces the deduction you can take for your out-of-pocket contribution on Line 2, and on Line 13 of Schedule 1.
Your total contribution limit is $7,200 (assuming neither of you are 55 or over). The employer contribution is $3,157. Your wife's contribution is $1,108. The remainder of 7200-3157-1108 is your contribution of $2,935. Had you marked that your wife made the over-contribution, her box 2 amount would have been reduced instead of yours.
