Open the image in Photoshop Elements. This method works best if the background is a solid color, or close to a solid color.
Navigate to the Layers window. This is typically located on the right side of the screen. Most images that haven’t been edited before will only have one layer, called “Background”. Right-click on this layer and select “Layer From Background…”.
This will open the New Layer window. Leave the options at their presets and press OK. “Background” will change to “Layer 0”. Doing this will unlock the image, allowing you to edit it.
Select the Magic Eraser tool. This is located in the Eraser tool menu. To access it, click and hold the Eraser tool icon. Select the Magic Eraser Tool from the menu that appears.
Adjust the Magic Eraser settings. Once you select the Magic Eraser, you will see some settings in the top menu bar. Adjust them so that they look similar to this:
Set Tolerance to 20-30. A low tolerance will keep parts of your original image from being erased when you use the tool. Adjust the tolerance to find a level that works for your project.
Check the Anti-alias box.
Check the Contiguous box.
Set Opacity to 100%
Click the background. The Magic Eraser will remove all of the color that you clicked on, turning it into transparent background. The Tolerance level will affect how many related colors are removed as well (For gradient backgrounds).
Make any minor adjustments. If you were deleting a solid-color background, it should be almost completely erased in one click. You may need to zoom in and make minor adjustments with the Eraser tool.
Select your object. Once you are satisfied with the removal of the background, you can use the Lasso tool to draw a rough outline around the object. Press Ctrl+Shift+J to create a “New Layer Via Cut”, which will place your object on a separate layer from the old background. You can now delete the background layer (Layer 0).
Save your image. You now have an object with a transparent background that can be overlaid onto any other existing image.