2002? or2003?

What is the name of your state? ca

Do you report the earned income in the previous year based on the days worked or date paid. Example:

Worked DEC. 22-28 with the 28th being the last day of the pay period. But the actual pay day is on Jan 7th of the New Year. What year does the income get reported for?

2003 unless you are an accrual-basis taxpayer. (If you don't know what that means, you aren't accrual basis!)