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In this video tutorial, MJ demonstrates how to convert text into a table in Microsoft Word. There are three ways to convert text: using tab settings, selecting text, and pressing the tab button on the keyboard to set the tab. Proper tab setting is crucial for converting text into a neat format. It is important to use the correct tab and ensure consistency throughout the text to achieve a well-organized table. Pressing the tab button on the keyboard will set the tab at a standard five-centimeter width.