If you reported Child A's Scholarship in the Education section in your Federal return, and returned the 529 distribution back to his 529 account, you don't need to report this in your Arizona return.
Since Child B's distribution was used for Education Expenses, you did not have taxable income there, either.
Neither of your 529 distributions was included in your taxable income.
Normally, you are not required to report your 1099-Q distributions unless it exceeded Education Expenses.
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