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Originally Posted by Saphire
I have also been told that if you want to go back to the image at a later time, save it as a psd file and it will keep the layers separate.
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Yes, this is the advantage of saving as PSDs rather than TIFFs - I routinely save mine as PSDs even though I don't often use layers! It's a habit I got into 'just in case.' The only disadvantage being that some other programs don't always support PSDs so you have to convert them to make a copy for other use.