Deinking is a fundamental part of paper recycling. As the global paper consumption rises and exceeds even the annual paper production, recycling of this raw material is of high importance. Magnetic ink based on carbon coated magnetic nanoparticles enables an alternative approach to state of the art paper deinking. Magnetic deinking comprises three steps (preselection, washing, and magnetic separation of fibers). Preseparation of printed from nonprinted scraps of paper is feasible and reduces the paper mass which has to be fed into a deinking process. A consecutive washing process removes surficial magnetic ink that can be collected by application of a permanent magnet. Still, printed parts are subjected to a further continuous magnetic deinking step, where magnetic and nonmagnetic paper fibers can be separated. Magnetic deinking of a model print allows recovery of more than 80% of bright fibers without any harsh chemical treatment and the re-collection of more than 82% of magnetic ink.