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In this tutorial, the presenter demonstrates how to create handmade tags using Microsoft Word. They mention the option of using other software as well. These tags are versatile and can be used for various purposes such as for handmade items, t-shirts, gift bags, party favors, etc. The tags can be hung using ribbons or keychain links. The process is easy and starts with opening Microsoft Word, saving the file in the correct format, and then customizing the tags according to your preferences.