Not sure about photoshop, but I recently did this in GIMP and the theory should be the same. Create a new image with a single layer that is transparent. Select the part of the original image that you want to show and paste it onto the new, transparent image. You will need to save it as a GIF or other image type that supports transparency, rather than a jpeg, otherwise your image’s transparent areas will be converted to white (most probably) during the export process.

Open you image.
Using the magic wand tool, click in the white space.
Go to select and choose inverse.

Go to file -> New.
Make the image the same size as your old one, and make sure background is set to transparent.

Go back to your picture and select the move tool.
Drag your image into the new file you created.
Go to file -> Save for Web.
Make sure it is set to save as a GIF.
It may look white, but if you drop it in something with a colored background, you’ll see that the background is clear.

Hope that helps!

there are a couple of different things that you could try to correct this problem. try changing some of the settings on the camera…
and if that doesn’t work try moving the picture to a different spot where there isn’t so much light. or you could wait until a different time of day if the picture was taken outside and take it then.

save is as a png-24 file. Or drag the image onto a new transparent canvas.

Edit…oops, read the question wrong.

File—>New—> then there will be a drop down menu (the default is white) change it to transparent and click ok.