Need to enter a 1099 R form for an annuity. Live in IL and already rcvd ck as I closed the annuity. Taxed at 28% Fed and 7% State to cover all taxes. Why do I owe still?

The withholding on your 1099-R is merely an estimate of your potential taxes on the money you receive.  Your actual tax bill may be more or less based on your total income for the year when you calculate your tax return.