My husband was injured at work and has been out injured since Sept 2020 and told he would not have to pay federal taxes while out. Taxes were still taken from his check.

No, the wages on his W-2 is taxable. 

If he received disability payments, whether those payments are taxable depends on who paid the disability insurance. 

You might want to check with the company's payroll and/or HR department.  

According to the IRS:

"You must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer:

• If both you and your employer have paid the premiums for the plan, only the amount you receive for your disability that's due to your employer's payments is reported as income.
• If you pay the entire cost of a health or accident insurance plan, don't include any amounts you receive for your disability as income on your tax return.
• If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and you didn't include the amount of the premium as taxable income to you, the premiums are considered paid by your employer, and the disability benefits are fully taxable."

IRS Source