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I am trying to add a dashed line border around a coupon I've made using CS6. I tried adding a shape (rectangle) with the dashed Stroke option but the rectangle shape covers my coupon. Can I make everything but the dashed border transparent?

Or is there a better way to accomplish this? I am new to Photoshop and will need step by step instructions.

This is what I want to achieve:

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Set the rectangle to have no fill. – Scott Apr 24 '14 at 18:25

No fill as Scott said, shown here:

enter image description here

Or reducing fill to 0 opacity, shown here:

enter image description here

Or clipping mask - arrange layers and click like so:

enter image description here

With this as the result of clipping mask:

enter image description here

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If this is for print, your best bet may be to start using Illustrator, since it's intended more for vector work than pixel work. Vector support (smart objects, shapes, text, etc.) is always being improved in Photoshop, as the other answers show, but it's a bit more intuitive with Illustrator (especially if you're still new to Photoshop). FYI, The solution is essentially the same in Illustrator – set fill to none.

That said, another way – the old way – is to use layer styles. Here is a great article on how those work compared to shape strokes:

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