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How do I remove the white areas from a image?
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A screen shot may help us to see the issue.
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It's difficult to say without seeing your image. This is one method but there are others.
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In addition to what has been said, the unique layer called Background cannot hold transparency. Rename the layer to make it a regular layer.
JPEGS can't have transparency, so save in another format such as a PSD or TIFF or PNG, depending on where the image will be used.
~ Jane