I have been playing guitar for a couple years teaching myself but all of the songs I have learned I've learned from tabs. I was wondering if anyone has any tips on figuring out songs by ear or a way to "practice" so I will be able to figure them out by ear. It just frustrates me because I want to be able to do that very badly. Thanks
Try humming the song with out listening to it, then just get a feel for the fret board untill you can play what your humming.
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Play a song on the radio or whatever you use to play music and then grab a random note on your guitar and listen to how it blends with the song, if it sounds bad then move around and see which notes really sink in. You will know when you hit that one.

Keep in mind the chord progression of the song. Some notes will sound ok but that might just mean they are in the key and not the actual chord being played. You just have to try and play along and your ear will build up eventually
Having a good knowledge of music theory comes in handy when figuring out songs...if it's just the melody I'll find the root note of the scale and while I don't have perfect pitch, I can hear intervals pretty well so it's usually pretty quick from there...with chords learn which chords go with which scale, and it makes it a lot easier instead of randomly hunting for a chord. If I'm feeling particularly lazy I'll ask my brother (who has perfect pitch) what key the song is in and then figure out what family of chords I should use from there.
1) get the melody of the song in your head
2)take any major or minor scale
3)the melody is most likely made up of those 11 or so notes.
3)once you get the melody down, play the same thing on different areas of the neck and find what key its in. (assuming you didnt start with the correct key)

This was my beginner's method.