In a bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.

In a large mixing bowl, beat the softened butter and granulated sugar until light and fluffy, about 2-3 minutes.

Add the egg, vanilla extract, and almond extract (if using) to the butter mixture and beat until well combined.

Gradually add the flour mixture to the wet ingredients, mixing on low speed until just combined.

Divide the dough into two equal portions, wrap in plastic wrap, and refrigerate for at least 1 hour.

Preheat the oven to 350°F (175°C) and line baking sheets with parchment paper.

On a lightly floured surface, roll out one portion of dough to about 1/4 inch thickness and use cookie cutters to cut out shapes.

Transfer cutouts to the prepared baking sheets, spacing them about 2 inches apart.

Bake for 8-10 minutes or until the edges are lightly golden.

Let cool on the baking sheets for a few minutes before transferring to wire racks to cool completely.

Decorate with royal icing and sprinkles.