Clipping Magic is a great tool; the best online tool I have ever seen for removing an image's background to "cut out" the subject of the photo and create a png file with a transparent background. It is so easy that anyone can do it successfully, and the results are excellent. The once free tool is now a paid service. The prices are reasonable if it's a tool you use often.
In the following subscription plans, one credit is equal to one download.
For more information about pricing and subscription details, see the subscription plans link above.
Free Alternatives to Clipping Magic
If you don't want to pay for the Clipping Magic service, several free and online services are available. They are definitely not as user-friendly as Clipping Magic, but they will get the job done with a little extra patience and effort.
Fotoflexer is the tool which is most similar to Clipping Magic, although it is not quite as intuitive. After uploading your photo
Be sure to switch between original view and processed view at the top of the page to see the results as you are working. You can only edit in original view. One of the major differences between Clipping Magic and Fotoflexer is that in Fotoflexer you may have to actually color in all the areas you want to keep or delete, although the Predict Unknown Areas button will help.
Online Image Editor
With Online Image Editor, you can very easily remove a solid colored background. See these instructions.
Remove Background From Image
Another site I found after posting this blog is Remove Background from Image. It is more like Clipping Magic than FotoFlexer is! Read these instructions! The instructions don't tell you how to upload your image. Click the Photosbutton (third from the left) to upload. This may be the best site of the three!