tsconfig.json

{
  "compilerOptions": {
    // Target latest version of ECMAScript.
    "target": "es6",
    // Search under node_modules for non-relative imports.
    "moduleResolution": "node",
    // Process & infer types from .js files.
    "allowJs": true,
    // Let TypeScript emit the d.ts files
    "emitDeclarationOnly": true,
    // Set declartion to true
    "declaration": true,
    // Determine where the d.ts files are put
    "declarationDir": "./dist/types",
    // Redirect to declarationDir
    "outDir": "./dist/",
    // Enable strictest settings like strictNullChecks & noImplicitAny.
    "strict": true,
    // Disallow features that require cross-file information for emit.
    "isolatedModules": true,
    // Import non-ES modules as default imports.
    "esModuleInterop": true,
    // Allow TypeScript to automatically compile tsx
    "jsx": "react",
    // Allow named exports rather than export * from
    "allowSyntheticDefaultImports": true,
    // Add types for both node and jest
    "types": ["node", "jest"]
  },
  "include": ["src"],
  "exclude": ["node_modules", "**/*.test.ts", "**/*.test.tsx"]
}