This article explains how to use Clipping Masks in Photoshop CC and Photoshop Elements to cut an image into a custom shape. Also included: how to add graduated transparency and layer effects to the cutouts.
How to Create a Clipping Mask in Adobe Photoshop Elements
Open the image you want to cut into a shape and follow these steps:
Open an image in Photoshop. Select Layer > New > Background Layer.
Enter a name for the layer and select OK.