I will try explain this (with photos of course) best I can, it is only a very small tutorial, because it is really simple and so easy! I thought I would do one up for anyone that may want to give it a go. 
PS: click on the photo to see the larger preview.
Firstly, click on File > New at the top. A box will come up, make sure BACKGROUND CONTENTS is set on Transparent if you want to have a Transparent background, then click OK. Otherwise, if you have a background saved on your computer you want to use, open it (File > Open) and you are done!
Open your photo/image that you will be using. (File > Open)
Next, we want to crop the photo. You will find the crop tool in the first box on the left hand side, it is the 5th tool there.
Using the cropping tool, make a box around the photo, depending on how much you want to crop it, and then just press enter. (if you make a mistake, just press CTRL+ALT+Z and it will undo it, or on the top bar, edit > undo)
Now you have your cropped photo.
Next step is the cutting out.
At the top, you will see the menu bar with the following: File Edit Image Layer Select Filter View Window Help
Click on Filter > and the second option you will see is > EXTRACT, this is what you will need to select.
When you have selected the extract option, you will see this box (you can resize the box, just click the right corner and drag it inwards)
Now, you will need to carefully highlight AROUND the edges of the image/photo using the brush tool (which should be selected for you already), you can zoom in using the second last option, and you can change the brush size option on the right hand side under Tool Options. I usually have it on around 20 for the size. Also, make sure there are no gaps, otherwise it won't work.
Side note: If you make a mistake, click on the eraser which is the 3rd one down, and then click on the pen tool again once you are done.
Once you have highlighted around the edges, you will have this..
Next, we fill the image/photo using the pain bucket took (second one down) and then click on OK.
As I said, it will not work if you have left any gaps.
This is what you should see if you have a transparent background, if you opened a background from your computer, the image/photo will come up on that.
You can get rid of the messy bits around the image/photo using the eraser tool (located on the left hand side, you will see the eraser image); you can change the size of the brush, it should be directly under the menu bar, below Image.
And you are finished!
I hope this helps, and most of all makes sense. If anyone has any questions, feel free to go ahead and ask.
PS: click on the photo to see the larger preview.
Firstly, click on File > New at the top. A box will come up, make sure BACKGROUND CONTENTS is set on Transparent if you want to have a Transparent background, then click OK. Otherwise, if you have a background saved on your computer you want to use, open it (File > Open) and you are done!
Open your photo/image that you will be using. (File > Open)
Next, we want to crop the photo. You will find the crop tool in the first box on the left hand side, it is the 5th tool there.
Using the cropping tool, make a box around the photo, depending on how much you want to crop it, and then just press enter. (if you make a mistake, just press CTRL+ALT+Z and it will undo it, or on the top bar, edit > undo)
Now you have your cropped photo.
Next step is the cutting out.
At the top, you will see the menu bar with the following: File Edit Image Layer Select Filter View Window Help
Click on Filter > and the second option you will see is > EXTRACT, this is what you will need to select.
When you have selected the extract option, you will see this box (you can resize the box, just click the right corner and drag it inwards)
Now, you will need to carefully highlight AROUND the edges of the image/photo using the brush tool (which should be selected for you already), you can zoom in using the second last option, and you can change the brush size option on the right hand side under Tool Options. I usually have it on around 20 for the size. Also, make sure there are no gaps, otherwise it won't work.
Side note: If you make a mistake, click on the eraser which is the 3rd one down, and then click on the pen tool again once you are done.
Once you have highlighted around the edges, you will have this..
Next, we fill the image/photo using the pain bucket took (second one down) and then click on OK.
As I said, it will not work if you have left any gaps.
This is what you should see if you have a transparent background, if you opened a background from your computer, the image/photo will come up on that.
You can get rid of the messy bits around the image/photo using the eraser tool (located on the left hand side, you will see the eraser image); you can change the size of the brush, it should be directly under the menu bar, below Image.
And you are finished!
I hope this helps, and most of all makes sense. If anyone has any questions, feel free to go ahead and ask.
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