> The FEIE does not apply to Social Security or Medicare taxes, or to state taxes.
I never figured out the payroll tax thing. I was working for the overseas affiliate of an American company, but never had SS/medicare withheld for anything but my dividend income. I also paid Chinese payroll taxes, and they obviously don't have a totalization agreement with the US.
As far as state income tax goes, the only state you really need to worry about is CA, who doesn't recognize foreign residency as an excuse against paying CA tax, especially if they claim you are still a resident because you own a home in CA.
I never figured out the payroll tax thing. I was working for the overseas affiliate of an American company, but never had SS/medicare withheld for anything but my dividend income. I also paid Chinese payroll taxes, and they obviously don't have a totalization agreement with the US.
As far as state income tax goes, the only state you really need to worry about is CA, who doesn't recognize foreign residency as an excuse against paying CA tax, especially if they claim you are still a resident because you own a home in CA.