Easy Wrapping Paper Gift Bag Cut your wrapping paper 3 inches longer and wider than you want the finished gift bag. Fold over one side of wrapping paper. Fold over the other side overlapping by 1.5 inches. Fold up the bottom of the wrapping paper 3-inches. Open up the folded end and crease the corners into the middle. Fold down the top and bottom “points” until they overlap slightly. Fold over the open end of the bag and punch holes. Fill your gift bag with goodies and tie the top closed with a ribbon. Festive ornament optional.