I am living in the US for the last two decades. I want to know the rights and duties Islam imposes on me. What should I do if I am asked by the government to do something that is against Islam? Also am I not required by Islam to strive and wage Jihad, if required, to establish an Islamic state wherever I live? I have been told that this is my religious obligation.
Muslims like you who have settled in non-Muslim countries are bound in a contract of citizenship. They must always honour this contract while living in such areas. They should respect the laws and live peacefully. They are bound by Islam to abide by the terms and conditions of any contract they make and they must never violate them in the slightest way. Such violations according to Islam are totally forbidden and, in fact, amount to a grave transgression. The Qur'an says:
Consequently, you must never break the laws of the country you live in and if a situation comes when, owing to some law, you are not able to follow a directive of your religion that seems imperative to you, you should first of all bring the matter in the notice of the authorities. If it is not resolved, then instead of violating the law or creating nuisance you should migrate from the US.
وَأَوْفُوا بِالْعَهْدِ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا
And keep [your] covenants; because indeed [on the Day of Judgement] you will be held accountable for them. (17:34)
As far as the question of striving to establish an Islamic state is concerned, let me tell you that you as a Muslim are not required by your religion to fulfil any such obligation. Some religious scholars do present the example of the Prophet Muhammad (sws) and say that since he had established an Islamic state in Arabia, Muslims, wherever they are, should follow his example. I am afraid that neither did the Prophet (sws) ever undertake the task of establishing an Islamic state nor was he ever directed by the Almighty to do so. The truth of the matter is that it is the Almighty Who according to His established practice regarding His Messengers took matters in His own hand in the time of the Prophet Muhammad (sws) and bestowed him and his nation the supremacy of Arabia.
Scholars who are of the opinion that Muhammad (sws) strove to establish an Islamic state in Arabia typically present the following verse in support of their view:
On the basis of the phrase "all religions", it is understood that the followers of Islam must struggle for its dominance in their respective countries and territories.
هُوَ الَّذِي أَرْسَلَ رَسُولَهُ بِالْهُدَى وَدِينِ الْحَقِّ لِيُظْهِرَهُ عَلَى الدِّينِ كُلِّهِ وَلَوْ كَرِهَ الْمُشْرِكُونَ
It is He Who has sent his Messenger [–Muhammad–] with Guidance and the Religion of Truth that he may proclaim it over all religions, even though the Idolaters may detest [this]. (61:9)
An analysis of the context of this verse shows that it belongs to the class of directives that relate to the established practice of the Almighty regarding His Messengers (rusul)according to which a Messenger (rasūl)always triumphs over his nation:
Muhammad (sws) was also informed that he would triumph over his nation. He and his Companions (rta) were told that they would have to fight the Idolaters of Arabia until the supremacy of Islam was achieved therein and that these Idolaters should be informed that if they did not desist from their evil ways they too would meet a fate no different from those of the other nations who denied their Messengers:
إِنَّ الَّذِينَ يُحَادُّونَ اللَّهَ وَرَسُولَهُ أُوْلَئِكَ فِي الأَذَلِّينَ كَتَبَ اللَّهُ لَأَغْلِبَنَّ أَنَا وَرُسُلِي إِنَّ اللَّهَ قَوِيٌّ عَزِيزٌ
Indeed those who are opposing Allah and His Messenger are bound to be humiliated. The Almighty has ordained: "I and My Messengers shall always prevail." Indeed, Allah is Mighty and Powerful. (58:20-1)
Consequently, it is to be noted that the word al-mushrikūn (the Idolaters) is used in 61:9 quoted above. The Qur'anuses this word specifically for the Idolaters of Arabia of the Prophet's times. As a result, "all the religions" in the conjugate clause can only mean all the religions of Arabia at that time. So, the verse has no bearing on Muslims after the times of the Prophet (sws).
قُلْ لِلَّذِينَ كَفَرُوا إِنْ يَنتَهُوا يُغْفَرْ لَهُمْ مَا قَدْ سَلَفَ وَإِنْ يَعُودُوا فَقَدْ مَضَتْ سُنَّةُ الْأَوَّلِينَ وَقَاتِلُوهُمْ حَتَّى لَا تَكُونَ فِتْنَةٌ وَيَكُونَ الدِّينُ كُلُّهُ لِلَّهِ
Say to the Disbelievers that if they now desist [from disbelief] their past would be forgiven; but if they persist, the punishment of those before them is already [a warning for them]. And fight against them until there is no more persecution and prevails there the religion of God. (8:38-40)
Therefore, striving to achieve the political supremacy of Islam is not any religious obligation of a Muslim, let alone waging Jihad to achieve this supremacy. The verses from which this obligation has been construed specifically relate to the Prophet Muhammad (sws).