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In the video tutorial, Catie from SchoolHabits.com discusses the importance of annotating text while reading. Annotating involves taking notes on the text, whether it's a book or an article. While it may not always be required, it is a valuable skill to develop early on. Annotating can help improve understanding and retention of the material, and it may even be beneficial for homework assignments. Overall, annotating text is a fundamental school habit that can greatly enhance your reading experience.