Tentative Tax Calculation

Hi,

 

I use FEIE to reduce my AGI to ~$22k , $12k in qualified dividends from US stocks and the remaining $9800 is non-excluded foreign income. 

 

I thought, the tax on my remaining foreign income would be $982 and I could use the non-excluded amount of foreign taxes paid, to reduced this amount.  In addition, my qualified dividends would be taxed at 0%,  since my taxable income is below the $39,375 threshold for long term capital gains.

 

Instead my taxable income is being taxed at 15% and in the tax summary page I see no credit...

 

Summary page:

AMT = 0

Total credits = 0

 

 

How is TurboTax calculating a tentative tax of ~$1400?

 

Thanks!