How to turn text transparent – punch through a background?

I’m trying to make it so the white area (the N) is transparent and cuts a hole over the star image to reveal the black background behind it. I’m using Photoshop.

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Using Advanced Blending Modes change the Knockout to either Shallow or Deep, either will work in this case and then drop your opacity:

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Source : Link , Question Author : user59085 , Answer Author : Ryan

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