I thought of grabbing the position of the first newline character and the last newline character and then grabbing the position of the cursor.
var firstNewline = $('#myTextarea').val().indexOf('\n');
var lastNewline = $('#myTextarea').val().lastIndexOf('\n');
var cursorPosition = ?????;
if (cursorPosition < firstNewline)
// I am on first line.
else if (cursorPosition > lastNewline)
// I am on last line.
If there is no selection, you can use the properties
.selectionEnd (with no selection they're equal).
var cursorPosition = $('#myTextarea').prop("selectionStart");
Note that this is not supported in older browsers, most notably IE8-. There you'll have to work with text ranges, but it's a complete frustration.
I believe there is a library somewhere which is dedicated to getting and setting selections/cursor positions in input elements, though. I can't recall its name, but there seem to be dozens on articles about this subject.