I can't sleep with the ticks crawling on me. Those nasty parasites freak me out. I think they are coming from the ground (maybe the dog).
They're coming from both, and like phat said, they'll hitch a ride on your cloths when you walk through grass, trees and brush.
I use picaridin spray on my skin to keep from getting bit. It's not near as nasty as DEET and not as smelly or oily as Lemon Grass mixes. It works great for both ticks and chiggers. You can spray your clothes and dog with it too. It will help keep them off him. It won't kill ticks like permethrin, but they don't like it and they'll jump off after awhile.
If the ticks are thick I'll spray some permethrin on my shoes, but I almost never use it on pants, and never on shirts I wear.
That creepy feeling that keeps you up all night thinking they're crawling all over you looking for a place to bite will probably subside after a few years. You'll start to think of them more like mosquitos, a nuisance, but not so much a menace. That's what happened to me anyway.
Bill