Why does Dreamweaver CC add an indent when I press "return"?

For example:

<div id="logo"></div>

    <div id="pic"></div>

    <div id="container"></div>

I did not add any extra spaces. I typed out #logo, pressed return, and instead of auto indenting to where the the first div was it added extra space.

I tried going into preferences > code formatting and change the "indent" and "tab size". Currently they are set at....

     Indent: with 2 spaces

     Tab Size: 4 "insert as spaces is not checked off"

I also tried taking off the "auto indent", which worked but, I would perfer not to have to tab over five times everytime I press return.

A little help would be greatly appreciated.

Thank you