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I want to cut a piece from a video like a box in the middle of the screen and have the layer under it to be seen through this box. I tried using the pen tool and the magic eraser but that also raterizes the video making it into an image. How can i make this kind of a cut out in a video??

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Add a vector layer mask to the video layer. With the layer selected in the layers panel click on the following icon to add a mask. To open the Layers panel, go to Windows -> Layers.

layer mask icon

Select the thumbnail on the right if it isn't selected and paint with black to make parts of the layer transparent.

transparent layer

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