tsconfig.json

{
  "compilerOptions": {
    "lib": ["dom", "dom.iterable", "esnext"], // adds a list of library files to compilation (i.e., using ES2015 allows us to use ES6 syntax)
    "outDir": "./dist/",
    "sourceMap": true,
    "strict": true, // enable all strict type checking options
    // "noEmit": true, // suppress TypeScript generating code during the compilation process (Babel will generate our JS code)
    "skipLibCheck": true, // skip type checking of all the type declaration files (*.d.ts)
    // "isolatedModules": true, // perform additional checks to ensure that separate compilation would be safe
    "esModuleInterop": true, // enables compatibility with Babel
    "noImplicitReturns": true,
    "isolatedModules": true,
    "noImplicitAny": true,
    "module": "es6",
    "moduleResolution": "node", // determine how module dependencies get resolved
    "target": "es6", // specify ECMAScript version to transpile our code down to
    "allowJs": true, // allow JavaScript files to be compiled
    "jsx": "react-jsx" // support JSX in .tsx files
  },
  "include": [
    "./src/**/*" // the files and folders for TypeScript to check (we specified all files in the "src" folder)
  ],
  "exclude": ["node_modules", ".vscode", "__tests__"]
}