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In this video tutorial by Catie from School Habits, the topic of discussion is how to effectively annotate text while reading. Catie explains that annotating involves taking notes on a book or article, which is a vital school habit to develop early. It may sometimes be a requirement for homework, depending on the teacher, but even if not mandatory, it is a beneficial skill that enhances reading comprehension. The tutorial encourages viewers to engage by liking the video or subscribing for more content. Overall, annotating is presented as a crucial technique that can significantly improve one's reading experience.