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Depending on the state you reside in will also be the deciding factor whether you can have an Amazon Associates account in addition to getting royalties from Squidoo for Amazon sales you have.
Yes you can get your Amazon commissions AND get royalty payments for Amazon at the same time as long as you are not in a blacklisted state.
In Texas, Colorado, Connecticut, Arkansas, Illinois, Hawaii, Rhode Island, North Carolina and California, it is no longer possible to be a direct affiliate for Amazon due to taxation conflict issues Amazon has with each of these states.
Amazon's reasoning here is, why should they have to follow and pay complicated taxes from states that are becoming overly aggressive when trying to collect Internet taxes, that other states are not requiring.
Regardless of how you feel about this, Amazon has made it clear that it will continue to remove states that try to invoke aggressive taxation.
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