What to check when hanging indents don't work in Word 2011

What to check when hanging indents don't work in Word 2011

This might be an insanely easy problem, yet it's not working for me. I
think what I want is called a hanging indent. I'm currently using Word
2011. I've gotten this to work before, although, I don't remember the
version of Microsoft office from before so that might be the "solution".
This is what I want:
8/5
tab indented txt (i hit tab to indent it)
2nd tab indented txt (cursor lined up under "t" in the previous line
after I hit enter)
8/6
tab indented txt (i hit tab to indent it)
2nd tab indented txt (this txt is lined up with the previous line
when I hit enter)
3rd tab indented txt (this txt is lined up with the previous line
when I hit enter)
8/7
tab indented txt (i hit tab to indent it)
2nd tab indented txt (this txt is lined up with the previous line
when I hit enter)
I went to the Format->Paragraph menu. From there, I clicked on "Indents
and Spacing". I clicked on "Hanging" which is under "Special" and
specified 0.5" as the indent amount. However, on a tab indented line,
after I hit enter, the subsequent line is not lined up with the previous
tabbed line, but with the left margin, i.e.
8/5
tab indented txt (i hit tab)
this subsequent line is not lined up with above tabbed line
Does anyone have any tips for this? I know this worked for me before at
previous jobs, although, I don't remember the version of Word I used
before. Thanks in advance for your help.