HOW TO CUT OUT THE PICTURE
1.)Open your image (my image). Then find Pen tool (P) in the Tool panel.

2.)Ensure that the Paths are checked, otherwise you will be making shapes. And we don't want that :)

3.)Zoom in your picture. I zoomed mine for 450%.
4.)Now start going around the border of the person with the Pen tool and keep clicking. You should see something like a chain with little squares around the object/person you are cutting out. (SEE MINE)
5.)When you're done and whole picture's been "chained" by Pen tool then right click and you should see a table(shown bellow). Choose option - Make selection...

6.)As you choose this option a table will popp up. Set as shown bellow.

7.)The picture you needed to be cut out should be now selected. (SEE MINE)
8.)Copy the selected image (Ctrl+C), make a New document (ctrl+N) and paste the picture there. You should get something like this (SEE MINE)
This means you've got rid of the background successfully! Congrats :)
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