It doesn't work if you have foreign earned income！ I tried this, and it ended up more taxes that I owe, because this ordinary dividends count as US income, you can't offset it with foreign credit.
I had the same issues with this niit tax due to qualified dividend. I select portion of it as investment incomes, enough to reduce US portion of income so I don't need to pay niit. Note, my foreign earned income above threads.
Chaz
