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Whisk together flour, baking soda, baking powder, and salt in a medium bowl
In a large bowl, beat butter, cream cheese, and 1 1/4 cups sugar until smooth and creamy, 1-2 minutes
Mix in vanilla, lemon juice, and lemon zest
Beat in egg
Slowly add flour mixture, mixing in a little at a time, until just combined
Wrap with plastic wrap and refrigerate for 1 hour
Preheat the oven to 350 degrees and line a baking sheet with parchment paper
Scoop sugar cookie dough into balls and roll in sugar until coated all over
Bake cookies 10 minutes, until edges just start to brown
Let cookies cool on the baking sheet for 5 minutes and move to a wire rack to finish cooling.