When trying to use background removal I get a black background, not a transparent one. What am I missing here?
1) Smart selection brush
2)Selections/Invert
3) Selections/Modify/Feather to desired
4)Delete
Black background
Sounds like you are working on a background layer. You will need to promote it to a raster layer. Background layers do not support transparency like raster layers do.
There are two ways to do this:
1. Go to Layers -> Promote Background Layer
2. Right-click on the Background Layer in the Layers Palette and choose "Promote Background Layer"