Custom Crosshair Texture imported wrong Photoshop

I couldn’t find another post with this question so if there is one, please link me…

I just recently installed UE4 and was kind of messing around in the First Person template. When I figured out how to import textures, I made a custom crosshair in PhotoShop CS6, deleted the background and saved it as a .tga file. I successfully imported it and then swapped the “FirstPersonCrosshair” texture with my custom texture (both 16x16) in the HUD blueprints.

The problem is when I play test the game, the white square that is supposed to be the transparent background shows up anyways. Should I be using a different file type? Should I be using a program other than photoshop that supports transparent backgrounds? Another thing I notice is when I view the two textures next to each other in the content browser, the custom crosshair has a white background (despite me removing it photoshop), and the default crosshair for that specific template has a checkered (transparent) background. I could also be doing something wrong in PhotoShop.

I hope this is an appropriate question to be asked here since my issue might involve other programs than UE4, thanks.