A Text file comes with an extension .txt where as Document files with Extension .rtf (Rich Text File), .doc (Old, opens with all microsoft office versions), .docx (New, opens with Microsoft Office 2007 and later versions) The major difference in Text, Doc files is A Text file wont support formatting like Bold, italic, underlining, colouring, alignment, designs, its only text (look as this answer part in this page!) Whereas Document support all the factures as mentioned above (resembles as this total page)