Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper.
In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.
In a large bowl, cream together the softened butter and granulated sugar until light and fluffy, about 3-4 minutes.
Beat in the egg, vanilla extract, and almond extract until well combined.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined. Do not overmix.
Divide the dough into two equal portions, wrap each in plastic wrap, and refrigerate for at least 1 hour.
Once chilled, roll out one portion of dough on a lightly floured surface to about ¼ inch thick. Use cookie cutters to cut out shapes (like stars, circles, or sports-themed shapes).
Place the cut-out cookies on the prepared baking sheets, leaving space between each cookie.
Bake in the preheated oven for 8-10 minutes, or until the edges are lightly golden. Remove from the oven and let cool on the baking sheets for 5 minutes before transferring to a wire rack to cool completely.
Once cooled, decorate the cookies with royal icing and food coloring as desired. Add sprinkles or edible decorations for extra flair.