How does me cashing in on my mutual fund effect my income tax return?

I just cashed in about $1000 of my mutual fund, and I just wanted to know if it will effect my income tax return.

ya

It depends on how much profit you made, and if it was short or long term capital gains or dividends.

irs doesnt care about what you took out just what you made if any and if it was short (under 12 months) or long (over 12)

Most likely, yes. You need to figure out how many shares you cashed in (it's usually a strange fractional number). Then take the $1,000, subtract any fees you incurred to cash in. From this net proceeds amount, you will subtract your basis in those shares. To get your basis, you need to find your purchase price for those shares, adjust for any basis changes (usually just end up adjusting up for dividends and capital gains previously earned and reported on your tax return). Subtract your basis from your net proceeds, and that's your gain (or loss). Fed rates vary based on how long you owned the shares, but just for giggles you can estimate at 26% or so. Same for state rules, usually 5-12%, so lets say 7.5%. So 32.5% times your net proceeds will be a very rough estimate of your taxes due. If you had a loss, you can offset all other gains federally (and in the states) and additionally you can deduct any losses (federally) against regular income up to $3000