Do I need to pay taxes on money I withdrew from my ira?

Yes.  And a 10% early withdrawal penalty if you are under 59 1/2.  Did they take any withholding out of it?  You will get a 1099R at the end of the year to report on your tax return. 

You didn’t actually pay the tax or the 10% penalty (you pay a 10% early withdrawal penalty if you are under 59 ½). You had taxes withheld like from your paycheck. You still have to enter the whole gross amount (before taxes were withheld) with your other income to figure out the total tax (and it may put you into a higher tax bracket) and then the withholding is subtracted from the total tax to figure your refund or tax due. The Gross amount shows up on 1040 line 4a or 5a and the taxable amount on 4b/5b. The withholding will show up on 1040 line 25b.