You do have to report crypto transactions any time you sell, convert, exchange, or spend crypto. And you do have to report interest income from crypto the same as any other investment. Technically you probably should have reported the "rewards" as interest income. But you don't amend a tax return for such a small amount. The IRS doesn't care about a $5 omission. It costs them a lot more than $5 to process an amended return. So you should not amend your tax return.
The tax rules for crypto are in a state of flux. The rules might still change for 2022, and will almost certainly change for 2023. And you might have larger transactions in 2022 or later. So keep an eye out for changes in the rules, and get tax advice from a tax expert or authoritative sources. Don't rely on your parents, unless one of your parents is a tax professional.
