Yes, the tile needs to be cut so it goes all the way between the countertop and the cabinet or window frame. In your situation I would end the backsplash in line with the side of the cabinet since it doesn't align with the countertop. That also avoids the light switch. Do you have a plan for the side of the tile?

I figured. just seemed like it will be a pain in the butt!!

side of the tile? as in the brown area that it wouldnt cover if i stopped at the cabinet?

No, the edge of the tile itself. You need a finished edge piece to use vertically between the cabinet and countertop so you don't see the unfinished sides of the tiles. See if the tile has a matching pencil edge or look for a schulter trim.

Oh!!! yes we werw going to look at pencil edge! i havent heard of schulter trim — we are newbies hahaa i will look into that as well!! thank you!