tsconfig.json

{
    "compilerOptions": {
        /** General settings **/
        "target": "es6",
        "module": "esnext",
        "lib": ["dom", "esnext"],
        "jsx": "react-jsx", // transpile JSX to React.createElement
        "isolatedModules": true, // warns if code can’t be correctly interpreted by a single-file transpilation process
        "noEmit": true, // declares that tsc is only used for type checking and compiler to not output transpiled code
        /** Module settings **/
        "moduleResolution": "node", // use Nodejs module resolution strategy (else uses classic TS strategy)
        "baseUrl": "./", // for absolute file resolution
        "esModuleInterop": true, // allow interop between ESM and CJS/AMD/UMD modules
        "resolveJsonModule": true, // allow importing .json files
        /** Output files **/
        "declaration": true, // generate d.ts files for every ts or js file
        "declarationDir": "dist", // root directory where d.ts files are emitted
        "sourceMap": true, // generate a .js.map files for compilers to display original Typescript source
        "preserveConstEnums": true, // do not erase const enum declarations, allow enums to exist at runtime
        /** Compiler settings **/
        "allowJs": true, // allow JS files to be imported
        "skipLibCheck": true, // type check code specifically referring to rather than all d.ts files for libs
        "forceConsistentCasingInFileNames": true, // issue error if file import is of different case
        "strictBindCallApply": true, // check that functions are invoked with the correct arguments
        "allowSyntheticDefaultImports": true, // allow for imports e.g. import React from "react"
        "alwaysStrict": true, // ensures files are parsed in ECMAScript strict mode
        "noFallthroughCasesInSwitch": true // report error for fallthrough cases
    },
    "include": ["src/**/*", "tests/**/*", "custom-types/*", "stories"],
    "exclude": ["node_modules", "rollup.config.js"]
}