Newly wed in 2009. Wife itemized her deductions on her federal return for 2008, I used the standard deduction. We both have 1099 G's in 2009 for state income tax refunds from 2008. Do both amounts have to be entered on 1040, line 10 or just the amount from my wife who itemized last year?

You only need to report the 1099-G for your wife, since she itemized and you didn't. See the worksheet on page 23 of the 1040 instructions to determine how much of her refund is taxable: http://www.irs.gov/pub/irs-pdf/i1040.pdf

If 2008 if your wife itemized deduction, you must also itemize your deductions; you can not take standard deduction.

Mukata - from what the OP posted it seems that they weren't married in 2008, so they both filed as single.