Getting rid of my image background

Just change the blending mode of your pig layer to Multiply. Then flatten the layers.

1. First start with Crop Tool (C) and crop your image to smaller size you selected above (pig House)
2. Choose Magic Wand Tool (W) - be carefull not Quick Selection - Magic Wand and set its tolerance to 10-20
3. Click anywhere on White area and then choose Select>Similar command
4. Inverse Selection (CTRL+Shift+I) Select>Inverse
5. Choose CTRL+J command to move your graphic onto anew layer
6. Open Layers panel (F7)
7. Use eye  button to hide background. Now your graphic should be without background
8. Save as PNG file

pawel

Try this (courtesy of normfb)

Eliminating the White area with precision

Eliminating the white area can be done with precision by using the Layer Style's Blend If command.

1. Open the file and if the layer is locked, click on the lock to remove it.

2. Cmd or Ctrl +click on the New Layer symbol in the Layers panel to place a layer below the image.

3. Return to the top layer and double click on it in the Layers panel to bring up Layer Style.

4. In the Blend If section at the bottom of Layer Style, move the right slider of the top grayscale to the left until the white area becomes transparent. It is a very small move. 244 or 243

5. Layer > Merge Down and save it as psd file.

Then when you place it in the image, the background will show through instead of white.