The quarter-squares are the numbers of form $k^2$ and $k(k+1)$.
Start by expressing $N$ as the sum of four squares.
If you used some square four times, i.e. $N=x^2 + x^2 + x^2 + x^2$, then $N=(2x)^2$ is a quarter-square.
If you used some square three times but not four times, i.e. $N=x^2 + x^2 + x^2 + y^2$, then $N=(x-1)x + x^2 + x(x+1) + y^2$ is a sum of four distinct quarter-squares.
If you used some square twice combined with two other distinct squares, i.e. $N=x^2 + x^2 + y^2 + z^2$, then $N=(x-1)x + x(x+1) + y^2 + z^2$ is a sum of four distinct quarter-squares.
If you used two distinct squares twice each, i.e. $N=x^2 + x^2 + y^2 + y^2$, then $N=(x+y)^2 + (x-y)^2$ is a sum of two distinct quarter-squares.
Finally, if you used four differentdistinct squares, then trivially $N$ is aclearly the sum of four distinct quarter-squares.