Overlay Transparent Text Over an Image

A quick guide on how I put smoke inside the word 'RAIN'

STEP ONE: Choose a Background and Duplicate the Layer

I used this image as a background :

Open it in photoshop and then make a duplicate layer of it.

STEP TWO: Make a New Layer

Make a new layer and put it in-between the background layer and the duplicate layer you made earlier. 

STEP THREE: Fill the New Layer With White

Make sure the new layer is selected and then click on the Edit menu bar, then click 'Fill'.

Change the 'Contents' to white, and make sure all the other options are set to their default values.

STEP FOUR: Add the Text

Select the Duplicated Layer again, and type the text that you want to use.

After you have made the text exactly as you'd like it, drag the text layer below the duplicated back ground layer. 

STEP SIX: FINAL STEP

Click on the Layer menu and select Create Clipping Mask. DONE!

This is the location I learned this trick, check it out!