Are stocks that are shorted but have yet to be bought back taxed?

I’ve never short sold anything yet so I’m not sure how it works exactly.

Let’s say I short company XYZ, 1000 shares for $1/share. I would have to borrow stocks from a broker then immediately sell those stocks right? So then it looks like I made $1000 even though I haven’t bought back the shorted stock. Would I get taxed on the money I have now ($1000) from the short even though I haven’t bought back the stock? After all, I do have an extra $1000