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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. It is a fundamental school habit that can be beneficial as it helps to improve reading comprehension. While it may not always be a requirement, it is a useful skill to have. Annotation can be a key factor in enhancing your reading experience and understanding of the material.