Look at page 10 of the above EFC formula PDF file for the dependent student worksheet.
It has you list AGI from tax return and income from working (gross federal wages from W2).
The total income will be used (AGI or W2 income, whichever is higher, minus any deductions like taxable scholarships reported as part of AGi or income from work study).
Then it has deductions for federal, state, social security tax, and income protection allowance.
That results in Available income, which will be much lower than total income.