"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."
The issue is that the capital gains/qualified dividends tax rate is not determined by your taxable income but by your MAGI (Modified Adjusted Gross Income).
Excluded foreign income is added back to taxable income to create the MAGI for capital gains/qualified dividends.
Hence, your qualified dividends are not taxed at 0% but at 15%, because your MAGI is larger than you expect.
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