How tightly do I crop canvas for sprites?

[gaudog]

I have a character sprite, which I made in photoshop. How tightly do I crop the canvas around it?  I already did some animation keeping the same canvas size and tried to get the centering as consistent as possible.  However, not cropping tightly around my character, I noticed during a test run, he doesn't walk exactly to the point of the walk cursor.  He always  walks to a point a bit above where I point, whether it be up, down, left or right.  I guess I'm trying to figure out how to get him to walk to the point and suspect the canvas crop has something to do with it?

[Cassiebsg]

The character will always use the middle lower point of the sprite canvas to walk to. If the feet of your character are 5 pixels up, then add at game start character.z=-5.