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Saving text as an image w/transparent background


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I am trying to save text as an image.

I've typed in the text in the color that I want. I've clicked on the magic wand, clicked on the white space and I get the checkered background. But it also covers my text and then when I try to use the saved image, it's all completely transparent.

How do I do this so that the text shows up, but the background remains transparent?

Thank you for your input.

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