We are from Canada. My husband relocated to CA in October 2011 on H1B visa and family (wife and two kids joined him on H4) at the end of November 2011. What is our residency status a what forms need to be completed?

Nonresident. You need to be here for at least 183 days in 2011 to be a resident for 2011.

1. Your husband can file nonresident tax return and claim dependents as well as exemption for spouse if spouse did not have any income in 2011. You can also deduct moving expenses.
2. Choice 2. You can file joint return as residents for 2011 after you complete SPT in 2012. You can claim moving expenses. Your U.S. Tax Return: Substantial Presence Test