Can You Tape a Dollar Bill? What to Do With Damaged Money

Damaged currency raises questions about its usability and value. Understanding the validity of a taped or significantly damaged dollar bill is important for transactions and seeking redemption. The U.S. Department of the Treasury oversees the production and circulation of currency.

Using Taped or Damaged Bills in Transactions

United States coins and currency are legal tender for all debts, public charges, taxes, and dues. Federal statutes do not require private businesses or individuals to accept cash for goods or services. Therefore, a business may establish its own policies regarding the acceptance of currency, including slightly damaged bills.

Minor damage, such as a small tear, writing, or slight discoloration, does not render a bill unusable. A taped dollar bill may still be accepted by businesses or individuals if its authenticity and value are clear. Acceptance for minor damage is at the discretion of the recipient, as these bills are considered usable by financial institutions.

When to Seek Redemption for Damaged Currency

Currency too severely damaged for regular transactions may need to be submitted for redemption. The Bureau of Engraving and Printing (BEP) evaluates and redeems “mutilated currency.” This includes currency damaged to an extent that its value is questionable, such as when one-half or less of the original note remains.

Damage can result from incidents like fire, water, chemicals, explosives, or animal activity. For a mutilated bill to be redeemed at full face value, more than 50% of the identifiable U.S. currency must be present. If 50% or less of the note remains, redemption can still occur if the method of mutilation and supporting evidence satisfy the BEP that the missing portions were completely destroyed.

How to Prepare Currency for Redemption

Before submitting damaged currency to the BEP, prepare it carefully. Gather information including the estimated value of the currency and a detailed explanation of how the damage occurred. If any pieces are missing, provide an account of how they were destroyed.

Physical preparation of the currency requires careful handling. Do not disturb fragments more than necessary. If the currency is brittle, package it carefully in cotton or plastic.

If found in a container like a wallet or box, leave it undisturbed within that container and send the entire item to prevent fragment loss. Avoid taping fragments together if they were not originally taped, and do not roll, fold, or laminate the currency. All submissions must include a completed and signed BEP Form 5283.

Submitting Damaged Currency for Redemption

After preparing the currency and documentation, submit the package to the BEP’s Mutilated Currency Division. For U.S. Postal Service (USPS) deliveries, the address is: Bureau of Engraving and Printing, Mutilated Currency Division, Room 344A, P.O. Box 37048, Washington, DC 20013. For non-postal couriers like FedEx or UPS, use: Bureau of Engraving and Printing, Mutilated Currency Division, Room 344-A, 14th & C Streets SW, Washington, DC 20228.

Use registered mail with a return receipt, or insured mail, especially for larger amounts, to ensure proof of delivery. Processing time for mutilated currency claims varies based on complexity and workload, ranging from six months to three years. If approved, redemption amounts of $500 or more are made through electronic funds transfer (EFT) to a U.S. bank account.