Shredded paper can be composted at home! It is a great source of carbon year-round for your compost production, as some time outdoor carbon sources can be difficult to find in the warmer months. Remember, the best ratio of carbon to nitrogen (C:N) is 30:1, which means ideally you will have a large and steady supply of browns to your greens. Shredded paper is just that, a carbon source. It also provides good structure to the soil as it breaks down.
Shred and compost your: receipts, bank statements, newspapers, envelopes, newspapers, used printer paper..
Here are some important things to keep in mind:
Remove any plastic from envelopes before shredding.
Avoid wax coated, glossy, or colored paper.
Be sure it is mixed in thoroughly with your greens (food scraps, coffee grinds, etc.), so as to avoid clumping and thatching. It will break down faster if thoroughly mixed in.