Current density distribution in electric arcs inside low voltage circuit breakers is a crucial parameter for us to understand the complex physical behavior during the arcing process. In this paper, we investigate the inverse problem of reconstructing the current density distribution in arcs by inverting the magnetic fields. A simplified 2D arc chamber is considered. The aim of this paper is the computational side of the regularization method, regularization parameter selection strategies, and the estimation of systematic error. To address the ill-posedness of the inverse problem, Tikhonov regularization is analyzed, with the regularization parameter chosen by Morozov's discrepancy principle, the L-curve, the generalized cross-validation, and the quasi-optimality criteria. The provided range of regularization parameter selection strategies is much wider than in the previous works. Effects of several features on the performance of these criteria have been investigated, including the signal-to-noise ratio, dimension of measurement space, and the measurement distance. The numerical simulations show that the generalized cross-validation and quasi-optimality criteria provide a more satisfactory performance on the robustness and accuracy. Moreover, an optimal measurement distance can be expected when using a planner sensor array to perform magnetic measurements.