1. What you want to do is find your image, and go ahead and put it in a "transparent" layer or File>New. Select any size but make sure it is transparent. You can get your image anywhere, doesn't have to be cutout or have a solid background or anything. Just make sure it has a background so you can actually do the tutorial :P

2. Once you have your image, you want to get the magic brush tool. Select parts of the background and delete. ( if background is to detailed, it will only select a small part. If this is so, proceed to next step )

3. When you have deleted most of it, go back and use the eraser tool to erase any other background spots.

4. Once this is done, you will need to start the long boring process of erasing the small pixels with the eraser. Zoom in and make the brush smaller, and delete any of the background that is visible. If your afraid to delete one part, skip it and we'll get to it later.

5. It should look something similar to this when you are done.

Maybe a few background spots, but thats ok. Now to step 6....mwuhaha
6. A little touch is good right? Always need to make it look great. If you've ever made a sig, background, or any picture, you'll know it doesn't look good with just straight out "Liney" pixels. So i like to add a "tiny" bit of Gaussian Blur to the edges of the main picture. Select the lining with the "lasso" tool and go to Filters>Blur>Gaussian Blur. Set the Horizontal and Vertical from 1-5. Do this around all of your image and the white will magically disappear making our new cutout picture stand out :D

This is product i made from the tutorial :D

very very simple. thanks for reading. any questions PM me or email me at lamaz1927@gmail.com
please leave a comment :D

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