Doing taxes for my in laws and it is coming out that they don't have to pay any federal taxes and they receiving a refund for all that was paid in? is this normal?

It is possible.   You have not mentioned what kind(s) of income they received.   If they have mostly Social Security and only a smaller amount of other income with some tax withheld, they might be getting back all the tax that was withheld.   Without details we cannot tell you more.

Possibly, especially if most or all of their income is from Social Security.  Seniors also get a large Standard deduction.  If their 2021 situation will be similar, they may wish to stop the withholding.

And they might be getting the Recovery rebate credit on line 30?  Did they already get the Stimulus checks?  Did you see the screen to enter the amounts they got?