Step 1: Play with layers
Duplicate your layer by dragging it onto the new layer icon or by going to Layer>Duplicate Layer. Then create a new layer and rename it ‘fill’. We are going to add some colour to this layer by going to Edit>Fill. We are going to use white but you can use whatever colour you like. When you’ve selected your colour drag the fill layer under the image you duplicated.
Step 2: Type
With your chosen image at the top of the layer order select the type tool. You need a font that’s big and bold so Impact works well. Type your chosen word(s) out but don’t worry if it’s not quite in the right place as we are going to adjust the position.
Step 3: Move the words
Select the Move Tool and move the text if you’re not happy with its current location. If you want to make the text bigger or small go to Edit>Free Transform and use the anchor corner points that appear to adjust the text then hit the enter key on the keyboard when you’re happy with how it looks.
Step 4: Clipping mask
Drag the text layer back under the image but above the fill layer then make sure the image layer is selected in the layers palette. Go to Layer>Create Clipping Mask and your text will now appear with the image within it. You can use the Move Tool to adjust the position of the image if it doesn’t quite look right.
Step 5: Drop shadow
To finish the image off select the text layer, click on fx at the bottom of the layers palette and select drop shadow. A new window will open where you can adjust various things including the opacity and size of the shadow. Close the window once you’ve made your changes and save your image.