Look on page 25. It defines the county where you lived and county where you worked.
http://www.in.gov/dor/files/08-it40bk.pdfCounty where you lived defined
The county where you lived is the county where you maintained your
home on Jan. 1, 2008. If you had more than one home in Indiana on
this date, then your county of residence as of Jan. 1, 2008, was:
Where you were registered to vote. If this did not apply, then your
county of residence was
Where your personal automobile was registered. If this did not
apply, then your county of residence was
Where you spent the majority of your time in Indiana during 2008.
Did you move during the year?
If you moved to another Indiana county after Jan. 1, 2008, the county
where you lived for tax purposes will not change until next year.
If, on Jan. 1, 2008, you lived in a county that has a tax, then you will
owe county tax on all of your Indiana adjusted gross income.
If, on Jan. 1, 2008, you lived in a county that doesn’t have a tax,
then county tax will be figured on your income from your principal
employment if the county where you worked on Jan. 1, 2008, has a tax
(see definition below).
County where you worked defined
The county where you worked (county of principal employment) is
the county where your main place of business was located or where
your main work activity was performed on Jan. 1, 2008. If you began
working in another county after Jan. 1, 2008, the county where you
worked for tax purposes will not change until next year.
Example. Jessie worked in Marion County on Jan. 1, 2008. She quit that
job and began a new one in Johnson County on Feb. 10, 2008. She will
enter the Marion County two-digit code (49) as the county where she
worked even though she changed jobs during the year.
If you had more than one job on Jan. 1, 2008, your principal place of
employment is the job where you worked the most hours and earned
the most income.