The following article pertains only to Windows versions of Word (e.g. Word 2007 and Word 2010). For information pertaining to setting tabs in Macintosh versions of word, please see Article #1617.
Set Tabs Using the Ruler Toolbar
1) Go to the View menu and select the box next to Ruler under the Show section
2) Then in your document, locate the small box at the left end of the ruler. Click the box until the type of tab you want to insert (left, right, center, decimal) appears. If you can't tell what a tab is from the picture on the button hover the mouse over the box
3) Click in the horizontal ruler in your document window in the position where you want to place the tab. A tab mark appears on the ruler
4) Press the Tab key to advance to your new tab stop
Set Tabs Using the Tabs Command in the Format Menu
1) Select the text to which you want to apply tabs
2) Go to the Home tab to open the Paragraph Dialog Box in the lower right hand corner of the Paragraph section and select Tabs
3) Select the Tabs button in the lower left hand corner of the Paragraph box
4) Select the alignment you want for the tabs you are setting (left, right, center, and so on)
5) Enter a number in inches in the Tab Stop Position box
6) Click the OK button to set the new tab stop
For additional information pertaining to tabs in Word, please see Set Tabs in Word 2007 & Word 2010 on Microsoft's support site.