In this video, we show how the American flag is supposed to be disposed of when it gets worn out or torn. As a symbol of America, the flag should be respectfully disposed of.

The following is a quote from the US Department of Defense website.

"The U.S. flag is considered such a sacred symbol that burning it in an undignified manner constitutes desecration. That's why the ceremonies are held in a specific manner."

According to the VFW, you first need to fold the flag in its customary manner.
When you start your fire, make sure it's big enough to fully burn the flag before you put the folded flag on it. Next, salute the flag and say the Pledge of Allegiance or hold a moment of silence.

Once the flag has been fully consumed, make sure to safely extinguish the fire — and of course, make sure you're conforming to local and state fire codes and ordinances before doing any of this!

Other veteran's service organizations say people can also bury the folded flag in a dignified box, or recycle them — an option that's common for flags made of synthetic or nylon material that can be hazardous if burned. Some groups, including the nonprofit Stars For Our Troops, carefully cut embroidered stars out of the flags and give them to veterans with a note that reminds them that their service won't be forgotten."
...
https://www.youtube.com/watch?v=iC0I4gwLlrQ