16b is right. And you report the gross amount before the tax withholding. You didn't actually pay the tax. You had taxes withheld like from your paycheck. You still have to enter the whole amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The withholding will show up on 1040 line 64 (2013 line 62) or 1040A line 36.
