Smaller squares 4 × 4 = 16 (As numbered).
As a whole bigger = 4
Total squares = 20
As we see in the figure in the middle 1, 2, 3, and 4 are 4 small squares.
Also, we have 9 and 10 = 2 big squares.
Outer squares 5, 6, 7, & 8 = 4.
Total = 4 + 4 + 1 + 1 = 10 squares.