In an English essay. do quotes need to be written in a new line?

As a general rule, if the quote is less than three lines, keep it in the body of your paragraph. If longer, it needs its own special space... put a space between it and the paragraph, then DOUBLE indent (push tab twice). Keep the whole quote lined up on the double indent. Quoting dialogue will almost always mean doing the latter option. You DO NOT need to indent (like you would at the beginning of a paragraph) when you start the paragraph again after putting in the quote.