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cut out words
Something like this is what I'll show you how to make.

1. Open up your picture and crop it to your liking. The bigger the picture, the better, but don't pick a huge one or your nose will turn green.

2. Open up a large new transparent canvas. Make it big, so that your words will fit.

3. In your picture, chose the Horizontal Text Tool that you can find by right clicking on the Text tool button. Make sure your alignment is on left align.

4. Make sure that you only have one layer, no adjustment layers or extraneous factors. Then type your word(s)! While I was writing my words, my picture looked like this.

5. Drag your words into your empty canvas. Once you have all the words you want, go to the Image menu and click Trim. In the pop-up menu, make sure the Top Left Pixel Color is selected, and make sure all four boxes under Trim Away are selected.

6. Bam! Make sure you Save For Web and that's all she wrote!