Mix powdered sugar, margarine, egg, vanilla and almond extract. Stir in flour, baking soda and cream of tartar. Cover and refrigerate at least 3 hours.
Heat oven to 375. Divide dough into halves. Roll each half 3/16-inch thick on lightly floured surface. Cut into desired shapes with 2- to 2-1/2-inch cookie cutters; sprinkle with granulated sugar (if you are not frosting). Place on lightly greased cookie sheet. Bake until edges are light brown, 7 to 8 minutes.
If you are making holiday cutouts, mix powdered sugar and milk together. Beat until smooth and of spreading consistency. Tint parts of frosting with food coloring as directed. Frost cooled cookies and allow to sit for several hours to harden the frosting.