
Theres always that moment, either halfway through your presents or directly after, where you look at that huge pile of ripped up wrapping paper and instantly feel guilty. What should you do? Throw it away or recycle?
Depends.
Some wrapping paper, like metallic and foil papers, are least likely to be recycled. So, first tip DONT BUY FOIL PAPER. Second tip REUSE REUSE REUSE.
To try and recycle any kind of paper, theres the obvious, daunting answer. Save and use again next year! Or use anytime during the next year to give birthday presents, send packages, wrap cookies and goodies, etc. Which entails carefully taking off the tape, folding the paper up and storing it God-knows-where for the next 12 months.
I've always saved bows and tags to reuse next year. Attach the bows with tape, not the given adhesive, and remain vauge on the tags. Keep in giant plastic bag with your wrapping paper all year long. 

Even bags in which presents were given are a great idea to save. A recycled bag is not a bad bag, its a saved bag from the landfill. Don't be shy to let your new receiver know that saving the bag isn't such a bad idea, because how worse could it get for your receivee to just chuck away that innocent, saved bag?
Acceptance of recyclible wrapping papers vary by state, county and city level. Its always a good idea to call your local waste management facility or check http://www.earth911.com/ for the correct information.
Suggestions that might help stretch your wallet out to next year:
Gift Bags: Easy to store, no wrapping paper needed, instead of acid tissue use newpaper to pack your bag. It probably wont be as pretty, but at least you know you can recycle that tissue afterwards! I bought more bags than I needed last year and ended up having enough for this year, which was great.
Sturdy, vauge paper wrap: The thicker it is the easier to fold and store and open presents without tearing it. Vauge, meaning one color, no patterns or ice skating penguins. You could use it for birthday presents, valentine gifts, cookies, sending your etsy package...etc.
Magazines: We all have them. The old, piled up copies of Cosmo in the closet, or a guilty collection of tabloids from the past year. Go through and tear it up! Use those pages as wrapping paper or tissue- your loved ones will instantly know how green and pro-active you are. You could even get crafty and find pictures you like or find funny and make tags out of them.
Don't Buy Foil Wraps.
Reuse and Save Bows and Tags: attach with not-so-strong scotch tape to presents.

Use the cardboard boxes you received the gifts in: Cover them in wrapping paper, eco-friendly wraps, or magazine pages and you can fit the whole families presents in one, probably.
Eco-friendly wrap
While you're at it, don't forget to recycle your Christmas tree -- Earth 911 lists places to do this nationwide.