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Draw a square Box around the image, using the Rectangular marquee tool and holding down Shift. Position the square box where you want it

Go the Image and then Crop the Image

Unlock the image, by double clicking the image in the layers panel and select okay in the pop up.

Increase the canvas size, so there is more room to work with the image, anything bigger than what the canvas size already is.

Create a New layer in the layers panel and drag this underneath the image layer, and fill white

Draw a Box the shape of a Polaroid picture using the rectangular marquee tool

Create a new layer, ensuring in the layers panel this is in-between both the image and the plan white layer, again fill this with white

Go the add layer style and select Drop shadow, to bring up the dialogue box

Adjust the settings until happy with the image

Adjust the Gradient Overlay setting, so the Polaroid picture isnt pure white, as they tend to be a very light grey colour.

Click Okay, and the image is complete