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Date: 2/11/13 11:14 PM
It depends how you want to use it. You can either use it as a binding, so it will kind of cup around both sides of the fabric, and show. For this, you need double-fold bias binding. Or you can use it as a facing, where you sew it to the front, then turn and sew it to the back. For this, you need single-fold bias tape. It doesn't have the middle fold.
If you're using it as a binding, then to keep the original neckline you would cut right on the stitching line of the original pattern - in other words, there is no seam allowance. Nothing is going to be turned under. The edge of the fabric will be the edge of the neckline, just covered with the bias binding. If you're using a commercial pattern, you would cut off the entire seam allowance. (If you left any seam allowance, it would make the neckline smaller than intended.) To apply it, unfold one side, sew to the fabric right sides together, so that your stitching is in the fold of the binding. Then fold it up, around the fabric, then in back, with the edge tucked under. Usually commercial bias binding has one side a wee bit longer than the other. Put that side on the back, then you can "stitch in the ditch" and catch the back binding. (Or, just stitch close to the edge of the binding, if you don't mind the stitching showing.)
For the second version, using bias tape as a facing, you would have a seam allowance the same size as 1/4 of the binding (usually 1/4"). So you would measure up from the neckline 1/4" into the seam allowance, and draw a new cutting line there. (So if the original seam allowance was 5/8", you'd cut off 3/8". The remaining 1/4" will be folded under with the bias tape.) Again right sides together, stitch to the neckline. This time though, turn the whole thing over at the seamline, keeping the middle part unfolded and the edge folded under. Press, using the fact that it's bias to shape it to fit the curve of the neckline. Stitch it down. The binding won't show from the front.
-- Edited on 2/11/13 11:18 PM --