For Photoshop
Create a basic tag, written for photoshop, but I am sure you can follow along with other programs.
Create a new image, whatever size you want your
tag to be.
Mine is 3 x 5 inches @ 300 resolution
Flood fill with a colour.
I am using black, you can always change it later.
Select a
corner with the Polygonal Lasso Tool.
It will help if your rulers are on, window-show-rulers.
I selected by the one inch marks.

Press Delete
Control D to deselect
Duplicate this layer, and flip it horizontally, edit-transform-flip horizontal
Hold down your control key and click on the flipped layer to select it.
You can delete this layer now
On your first layer, press control shift + I to invert the selection, and press
delete.
Control D to deselect.
You basic tag is now complete, though you can add a hole for eyelets if you
wish.
Use your selection tool, set to eclipse and while holding your shift key (to
retain proportions) draw out a circle, if you need to move your selection, use
your space bar.
Once you have your eyelet hole where you want it, press delete.

Your tag is now ready for decorating.
Happy Tagging.
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