Final answer:
The relationship between Form 1040 and the tax formula is intrinsic to the U.S. tax system, where Form 1040 outlines financial responsibilities and the formula calculates taxes based on adjusted gross income minus deductions and exemptions.
Step-by-step explanation:
The relationship between the tax formula and Form 1040 is essential in understanding the U.S. income taxation system. A key component of this system is adjusted gross income, which is used to determine taxable income by subtracting deductions and exemptions. Form 1040 represents a taxpayer's financial responsibility and reflects the tax formula through which taxes are calculated and paid to the government. This formula simplifies a complex set of rules from the U.S tax code into a more manageable calculation for taxpayers. Moreover, the taxable income relationship to the tax owed is depicted as a graph that, while not exactly linear due to progressive marginal tax rates, simplifies the concept for educational purposes.