Question : How many squares are in this diagram?

This has been driving me crazy. In an activity, we were asked to count the number of squares in the attached diagram.  

I have my answer, but the real answer is supposedly higher. I do not know how that can be. So, I'm taking this to the experts.  

How many squares do you count in this diagram?  If possible, please outline where each of them are.  I am off by 2 (and I've already counted the two squares hovering in the vertical center).
 

squares-problem.png (1 KB) (File Type Details) 

How many squares do you find?

Answer : How many squares are in this diagram?

40 squares:
==========
16 1-sq
9 4-big-sq
4 9-big-sq
1 16-big-sq

2 4-sm-sq
8 1-sm-sq