FEI exclusion on state taxes, and a couple of other uncertainties

I've been trying to make some very rough calculations to preview what I may have to pay in US taxes after my first full year of living in the UK. (Trying to calculate approx US tax with and without the foreign-earned income exclusion; I'm earning more than the exclusion amount.)

I have a couple of minor-ish points I'm confused about:
As a UK resident (for more than 12 months by the time I actually file, and planning to stay 5 years), am I exempt from US Medicare tax and US social security tax?

And a somewhat bigger uncertainty, as today I read something that freaked me out a little:  Nebraska law does not allow credit for taxes paid to a foreign country.
Unfortunately, Nebraska is the last state in which I lived before I left the US (though my US mail now goes the address of friends in Iowa). I can't find anything mentioned about the foreign earned income exclusion on the NE DOR website, but it looks as though the same adjusted gross income figure is used for NE, as on line 37 of federal form 1040 (which would presumably take into accout the exemption if claimed). I really hope this is the case, otherwise my NE tax bill is likely to be thousands more if I have to pay tax on my entire UK earnings either way.

I DO intend to use a tax attorney when the time comes. But if any of my fears can be put to rest in the meantime over any of these questions, I'd be very grateful!

1)  Call that accountant (not attorney) NOW.  Don't show up on his or her doorstop when you're ready to file.  We don't like that.  We like meeting you ideally before you've even moved, but if you've already moved, then as soon as possible after you've moved.  The time isn't coming, it has already come.  An added plus is that all your fears will be put to rest faster, more efficiently, at the same price you will pay if you wait, and you'll end up paying less tax too.

2)  Even though your questions are very specific, there is still a lot of missing information that we need to answer your questions. 

You ask good questions:

1. If your employer is a US employer and they intend you to stay less than 5 years (no matter you intend) and they have a certificate of coverage from the Social Security Administration keeping you in FICA then you owe no US social security.

2. You haven't explained on what grounds you think you have not broken residence in Nebraska, so more detail will be needed.

There are both UK and US tax implications of your questions.  I agree 100% with Lizzit that if you speak with a dual qualified US/UK tax adviser now you can start the planning process to minimize what you pay in both countries.

I AM NO TAX ADVISOR!!!

I found the following link to the 2006 Nebraska form:

http://www.revenue.ne.gov/tax/06forms/f_1040n_book.pdf

Don't panic, like most states it appears that Nebraska taxes partial-year residents & non-residents for income made within the state, not on total income.  See page 2 of the form for the quick description.  In extremely simplistic terms these usually work as follows (totally made up numbers):

Total Income:  $100,000
Nebraska Income:  $10,000
NE tax on $100,000 = $5,000
NE tax on $10,000 earned in NE = $5,000 * ($10,000 / $100,000) = $500

However, by all means though you should speak to a tax advisor here.  There are ways to take advantage of being an ex-pat in the UK, eliminating UK tax liabilities by being paid offshore and reducing your liability for the number of days you are out of the UK.  If you earn above exclusion and travel a lot this could be worth £1000s.

OK - mbmasters - the book and link are excellent.  They say that someone domiciled in Nebraska is subject to Nebraska taxes even if s/he lives outside the State for several years.

So the key here is to know what Nebraska court ruling exist on domicile and apply these to your circumstances.  An attorney or accountant may know this information once they also know your facts and circumstances.

The UK deductions that are mentioned probably won't work because dazzo has said s/he expects to be here for 5 years whereas  you have to intend to stay for less than 3 years to get most of these UK deductions.

Wow - thank you all for the responses.
I guess I had been thinking that there wasn't much point in seeing an accountant (don't know why I said attorney!) yet, until I had the final numbers, thinking that anything they did now would be hypothetical (useful ballparks academically to me but not the IRS), and would need to be redone at the time of filing anyway. 

But if there is a way it could help in the meantime, then I'll go ahead and follow up now. And I'll certainly raise the question of state domicile then, as the more I read about it, the less clear-cut my circumstances seem in that regard.

To clarify a little in relation to the replies, I'm employed by a UK (not US) company, and have a 5 year work permit, with what I understand to be the possibility of applying for ILR after that. That may or may not make the social security/medicare tax question easier to answer, but I will take that up with the accountant too and let them give me the good/bad/indifferent news.

The contrast to last year, when I was able to just file a simple 1040EZ in the US, does irk me. Sigh.. I did have to go and complicate my life by living in another country, didn't I?!

To clarify a little in relation to the replies, I'm employed by a UK (not US) company, and have a 5 year work permit, with what I understand to be the possibility of applying for ILR after that.

When talking to accountant make no decisions/statements regarding how long you want to stay in UK until you know the implications.  As Guya clarified, you must plan on staying less than 3 years to take advantage of some tax advantages (even if you end up staying longer).