Qualified Dividends and making the "Net Investment Income" election - will i benefit if i have a net capital loss for 2022?

I have a net capital loss for 2022 (long term/short term equits net losses) and my only other income is dividends (qualified and non qualified).

It seems to me that I will benefit by making the "Net Investment Income" election for the qualified dividends, yes?  because it will simply reduce my capital losses (they exceed the qualified dividends)?

also, i was advised that my margin interest, which seemed to be capped as a deduction, may be used more efficiently with this election?   My margin interest exceeds the standard deduction, but seems to be capped at $5,000 or so for an itemization, which is odd.

But mainly I'm concerned about reducing my net income.  because net of everything, i was in the red in 2022 (i have no other income), yet turbotax is still asking me to pay the state about $300 because of the dividend income it seems.

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