Business & farm

No. Line 3 Schedule 1 receives this income from Line 31 Schedule C. Line 3 Schedule 1 is combined with all the other income in Part I and flows to Line 9. The amount from Line 9, Schedule 1 flows to Line 8 1040. If you read each line on each form, you will see that how that happens.

You said, "The IRS instructions for that line this year specifically says For tax year 2020 line 8 will be used to report unemployment compensation exclusion.". It never says the only thing reported there is unemployment exclusion.