Before any cutting can happen, your subject must live inside your working document. Photoshop Elements gives you three reliable ways to get it there:

• Drag & Drop — drag the image between two floating windows. First confirm the option "Allow floating documents in expert mode" is enabled under Edit › Preferences › General.
• Place Command — use File › Place to embed the image directly into your current document as a new layer.
• Copy & Paste — open the source file, select all (Ctrl+A), copy (Ctrl+C), switch to your working file, and paste (Ctrl+V).

Once your image is in place, grab either the Lasso tool or the Polygonal Lasso tool from the toolbar. Trace a rough outline around your subject, staying close to the figure without overlapping it.

For subjects with interior gaps — like the space between an animal's legs — switch to the "Subtract from selection" mode in the tool options bar and draw around those gaps to remove them from your selection.

With your rough selection active, open the Refine Edge dialog — found under the Select menu or directly in the tool options bar in newer versions. This is where the magic happens.

• Use the Refine Edge brush to paint along the border between your subject and background. Photoshop Elements analyses colour and contrast automatically to tighten the selection.
• Continue brushing until the edges look clean, paying special attention to hair, fur, or other fine details.
• Set the "Output to" dropdown to Layer with Layer Mask and click OK.

This creates a layer mask on your subject layer: black pixels hide the background, white pixels show the subject — giving you fully non-destructive editing at every stage.

Even after Refine Edge, some areas may need manual attention. Click the layer mask thumbnail in the Layers panel to target it, then:

• Paint with a black brush to hide unwanted areas, or a white brush to reveal hidden parts of your subject.
• For sharper edges, use the Polygonal Lasso tool to select a problem area before painting — this keeps your strokes contained and precise.
• For fine details like whiskers or stray hairs, try the Burn tool to darken the mask around those delicate edges.

Now bring in your new background. Drag a different image into the file or choose one from the Graphics panel. In the Layers panel, drag the background layer below your subject layer so it sits behind the cutout.