My wife and i purchased our turbo tax from Costco and i entered the code to register when we stated our taxes. Now the program is telling me we need to pay, why is this?

We see people get confused and they keep logging in to online software which will require them to pay at the end.   You need to use the desktop software.   One way to tell if you are using the right software---your tool bar.   Online software has the toolbar in a black vertical column on the left side of the screen.   Desktop software has the tools up on the top of your TT screen.

You appear to be posting from online software instead of the desktop CD/download software that the license code is for.  If you are using online, you are using the wrong program.  You need to switch to the desktop software to get what you paid for.  You have to download it, update it and open it up from your own hard drive to use it.  

https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-the-turbotax-software/00/26129

Did you get the Desktop program CD or Download installed?  You seem to be in the Online version not the Desktop program you bought.  Is there a black menu bar going down the left side?  That is the Online web version.  

I see people all the time that have bought the CD/Download Desktop Software but then somehow ending up using the Online version and didn't know it. If that happened to you, you can move your Online file to the Desktop program and continue without paying for Online or needing to reenter your info.

You need to install the program on your computer and move your online return to the Desktop program. How to install the CD/Download program with a License Code
https://ttlc.intuit.com/community/tax-topics/help/activating-turbotax-cd-download-software/00/852971

Then you can download the .tax2023 data file without paying for Online and continue in the desktop version.

First save your return as a tax data file from Online
https://ttlc.intuit.com/community/saving/help/how-do-i-save-my-turbotax-online-return-as-a-tax-data-file/00/25740

See how to switch to the Desktop program,
https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-the-turbotax-software/00/26129

I buy mine from Costco too.  Did you buy the CD or go online and buy the download from Costco?  This year I bought the Download from Costco online.  Last year I bought the CD.  

Or if you actually are in the Desktop program (menu tabs go across the top) there is a fee to efile the state return.  What's it trying to charge you for?