My husband and I lived in California together from Jan-June last year, then I moved to Illinois on July, but my husband is still in California. We worked and get W-2. How do we state the filling status for our state tax return? How do we deal with the dividend and interests for a joint account in the bank?

Check if CA still considers you resident for 2008.

For ILLINOIS. If you are present in a state, then any income earned during this period, must be reported to the state.

To your resident state, you must report your worldwide income for the year. Read: Your U.S. Tax Return: Working or Living in Two or More states (http://taxipay.blogspot.com/2008/06/working-in-two-or-more-states.html)