Here you'll see how to create hanging paragraphs on:
Word for Microsoft 365
Word for Microsoft 365 for Mac
Word for the web
Word 2019
Word 2019 for Mac
Word 2016
Word 2013
Word 2016 for Mac
Steps for Windows
1. Select the text where you would like to add an indent.
2. Go to Home > Paragraph dialog launcher  > Indents and Spacing.
3. Under Special, select Hanging.Hanging Indents on windows
4. You may set the indent depth using the By field.
5. Select OK.
To add a drop cap to your paragraph, see Insert a drop cap.

To indent the first line of a paragraph, see Indent the first line of a paragraph.