Probably a dumb question, but do you want the tag directly on top of the item? It obscures the text a bit, but perhaps this is just fine because it will be a data point used later, so the actual tag won't show or cover anything?
Yes, please - place the tag as close to the item as you can, but don't worry too much about it because we use a grouping algorithm which collects similar tags within a certain distance of one another.