diff --git a/.planning/STATE.md b/.planning/STATE.md
index c37e160..f192339 100644
--- a/.planning/STATE.md
+++ b/.planning/STATE.md
@@ -4,7 +4,7 @@ milestone: v1.0
 milestone_name: milestone
 status: planning
 stopped_at: Completed 03-03-PLAN.md
-last_updated: "2026-03-11T21:37:48.890Z"
+last_updated: "2026-03-11T21:41:42.367Z"
 last_activity: 2026-03-11 — Roadmap created from requirements and research
 progress:
   total_phases: 4
diff --git a/.planning/phases/03-interaction-quality-and-completeness/03-VERIFICATION.md b/.planning/phases/03-interaction-quality-and-completeness/03-VERIFICATION.md
new file mode 100644
index 0000000..85cd3fd
--- /dev/null
+++ b/.planning/phases/03-interaction-quality-and-completeness/03-VERIFICATION.md
@@ -0,0 +1,149 @@
+---
+phase: 03-interaction-quality-and-completeness
+verified: 2026-03-11T22:40:00Z
+status: passed
+score: 5/5 must-haves verified
+re_verification: false
+human_verification:
+  - test: "Hover over an inline-editable amount cell in BillsTracker, VariableExpenses, or DebtTracker"
+    expected: "A small pencil icon fades in next to the value. Icon is invisible at rest and visible on hover."
+    why_human: "CSS group-hover:opacity-100 transition cannot be tested in jsdom — DOM presence is verified programmatically but the visual fade requires a real browser."
+  - test: "Edit an inline cell value in BillsTracker and save (blur or Enter)"
+    expected: "The table row briefly flashes green (~600ms) then returns to normal background."
+    why_human: "color-mix() inline style applied via setTimeout cannot be asserted in a unit test — requires a real browser rendering the CSS custom property var(--success)."
+  - test: "Edit an inline cell value to trigger a network error (e.g., disconnect backend)"
+    expected: "The table row briefly flashes red (~600ms) and the cell reverts to its previous value."
+    why_human: "Same as above — the error flash requires runtime CSS variable resolution in a real browser."
+  - test: "Load the dashboard when no budgets exist"
+    expected: "Loading skeletons appear briefly with pastel-tinted backgrounds (blue, amber, red, purple tiles), then the 'No budgets yet' empty state appears with a 'Create your first budget' CTA button."
+    why_human: "Skeleton tinting uses palette.*.light inline styles; the visual pastel quality and timing require a real browser."
+---
+
+# Phase 3: Interaction Quality and Completeness — Verification Report
+
+**Phase Goal:** Every user action and app state has appropriate visual feedback — loading states, empty states, edit affordances, and delete confirmations — so the app feels complete and trustworthy
+**Verified:** 2026-03-11T22:40:00Z
+**Status:** PASSED
+**Re-verification:** No — initial verification
+
+---
+
+## Goal Achievement
+
+### Observable Truths
+
+| # | Truth | Status | Evidence |
+|---|-------|--------|----------|
+| 1 | Submitting login, register, or budget create shows a spinner on the button | VERIFIED | `LoginPage.tsx:83` `{loading ? <Spinner /> : t('auth.login')}`, `RegisterPage.tsx:90` same pattern, `BudgetSetup.tsx:94` `{saving ? <Spinner /> : t('common.create')}` — all buttons have `disabled={loading/saving}` |
+| 2 | Hovering over an inline-editable row reveals a pencil icon | VERIFIED | `InlineEditCell.tsx:65-68` renders `<Pencil data-testid="pencil-icon" className="opacity-0 ... group-hover:opacity-100 ..."/>` in display mode; DOM presence confirmed by passing test |
+| 3 | After saving an inline edit, the row briefly flashes a confirmation color | VERIFIED | `BillsTracker.tsx:20-31` — `flashRowId`/`errorRowId` state + `triggerFlash` + 600ms setTimeout; `TableRow` inline style uses `color-mix(in oklch, var(--success) 20%, transparent)` when `flashRowId === item.id`; same pattern in `VariableExpenses.tsx` and `DebtTracker.tsx` |
+| 4 | Attempting to delete a category triggers a confirmation dialog before deletion executes | VERIFIED | `CategoriesPage.tsx:139` — delete button sets `setPendingDelete({id, name})` (no direct API call); second `<Dialog open={!!pendingDelete}>` at line 186 with `confirmDelete` handler that calls `categoriesApi.delete` |
+| 5 | Empty states with CTA on dashboard (no budgets) and categories page (no categories); loading skeletons use pastel-tinted backgrounds | VERIFIED | `DashboardPage.tsx:58-79` — `EmptyState` with `heading="No budgets yet"` and action CTA; `DashboardPage.tsx:41-56` — tinted skeleton block using `palette.*.light` inline styles; `CategoriesPage.tsx:105-112` — `EmptyState` with `heading="No categories yet"` guarded by `!loading && list.length === 0`; `BillsTracker/VariableExpenses/DebtTracker` each render tinted skeleton card when items array is empty |
+
+**Score:** 5/5 truths verified
+
+---
+
+### Required Artifacts
+
+| Artifact | Expected | Status | Details |
+|----------|----------|--------|---------|
+| `frontend/src/components/InlineEditCell.tsx` | Pencil icon, onSaveSuccess/onSaveError callbacks, try/catch | VERIFIED | Lines 12-15 (props), 29-35 (try/catch), 65-68 (Pencil with data-testid) |
+| `frontend/src/components/InlineEditCell.test.tsx` | Tests for pencil icon, save callbacks, error revert | VERIFIED | 9 tests passing: pencil icon DOM presence (line 108), onSaveSuccess (line 121), onSaveError+revert (line 144), no-callback-when-unchanged (line 172) |
+| `frontend/src/pages/LoginPage.tsx` | Spinner in submit button during loading | VERIFIED | Line 8 imports Spinner; line 83 conditional render |
+| `frontend/src/pages/RegisterPage.tsx` | Spinner in submit button during loading | VERIFIED | Line 8 imports Spinner; line 91 conditional render |
+| `frontend/src/components/BudgetSetup.tsx` | Spinner in create button during saving | VERIFIED | Line 7 imports Spinner; line 94 conditional render |
+| `frontend/src/pages/CategoriesPage.tsx` | Delete confirmation dialog with pendingDelete state, spinner, error handling | VERIFIED | Lines 35-37 (state vars), 78-91 (confirmDelete), 139 (delete button sets state), 186-200 (dialog with Spinner and error display) |
+| `frontend/src/pages/DashboardPage.tsx` | Empty state when no budgets; palette-tinted loading skeleton | VERIFIED | Lines 41-56 (tinted skeleton), 58-79 (EmptyState with CTA), 126-130 (select-budget EmptyState) |
+| `frontend/src/components/EmptyState.tsx` | Shared empty state: icon + heading + subtext + optional CTA | VERIFIED | Full implementation, all 4 props, exported as `EmptyState` |
+| `frontend/src/components/BillsTracker.tsx` | flashRowId state, tinted skeleton for empty sections | VERIFIED | Lines 20-31 (flash state + triggerFlash), 33-50 (tinted skeleton early return), 68-91 (TableRow flash style + callbacks wired) |
+| `frontend/src/components/VariableExpenses.tsx` | flashRowId state, tinted skeleton for empty sections | VERIFIED | Same pattern as BillsTracker, palette.variable_expense.light |
+| `frontend/src/components/DebtTracker.tsx` | flashRowId state, tinted skeleton for empty sections | VERIFIED | Same pattern as BillsTracker, palette.debt.light; previously returned null — now shows tinted skeleton |
+| `frontend/src/components/BudgetSetup.test.tsx` | Wave 0 stub: smoke test + 2 it.skip for IXTN-01 | VERIFIED | File exists; 1 passing smoke test; 2 it.skip stubs |
+| `frontend/src/pages/CategoriesPage.test.tsx` | Wave 0 stub: smoke test + 4 it.skip for IXTN-05 + STATE-02 | VERIFIED | File exists; 1 passing smoke test; 4 it.skip stubs |
+| `frontend/src/pages/DashboardPage.test.tsx` | Wave 0 stub: smoke test + 2 it.skip for STATE-01 + STATE-03 | VERIFIED | File exists; 1 passing smoke test; 2 it.skip stubs |
+| `frontend/src/components/BillsTracker.test.tsx` | Wave 0 stub: smoke test + 3 it.skip for STATE-03 + IXTN-03 | VERIFIED | File exists; 1 passing smoke test; 3 it.skip stubs |
+
+---
+
+### Key Link Verification
+
+| From | To | Via | Status | Details |
+|------|----|-----|--------|---------|
+| `InlineEditCell.tsx` | parent components (BillsTracker, VariableExpenses, DebtTracker) | `onSaveSuccess?.()`/`onSaveError?.()` callbacks | WIRED | `BillsTracker.tsx:87-88`, `VariableExpenses.tsx:97-98`, `DebtTracker.tsx:87-88` — all three pass `onSaveSuccess={() => triggerFlash(item.id, 'success')}` and `onSaveError={() => triggerFlash(item.id, 'error')}` |
+| `LoginPage.tsx` | `ui/spinner.tsx` | `import { Spinner }` | WIRED | `LoginPage.tsx:8` imports Spinner; used conditionally at line 83 |
+| `CategoriesPage.tsx` | categories API delete endpoint | `categoriesApi.delete` in `confirmDelete` handler | WIRED | `CategoriesPage.tsx:83` — `await categoriesApi.delete(pendingDelete.id)` inside `confirmDelete` async function |
+| `DashboardPage.tsx` | `EmptyState.tsx` | `import { EmptyState }` | WIRED | `DashboardPage.tsx:13` imports EmptyState; used at lines 71-76 (no-budgets case) and 126-130 (no-current case) |
+| `DashboardPage.tsx` | `lib/palette.ts` | `palette.*.light` for skeleton tinting | WIRED | `DashboardPage.tsx:17` imports palette; used in skeleton block at lines 45-52 |
+| `BillsTracker.tsx` → `InlineEditCell.tsx` | `onSaveSuccess` triggers `triggerFlash` | `onSaveSuccess.*flashRow` pattern | WIRED | `onSaveSuccess={() => triggerFlash(item.id, 'success')}` at line 87 |
+
+---
+
+### Requirements Coverage
+
+| Requirement | Source Plan | Description | Status | Evidence |
+|-------------|------------|-------------|--------|----------|
+| IXTN-01 | 03-00, 03-01 | Form submit buttons show spinner during async ops | SATISFIED | Spinner in Login, Register, BudgetSetup submit buttons; buttons disabled during loading/saving |
+| IXTN-02 | 03-01 | Inline-editable rows show pencil icon on hover | SATISFIED | Pencil icon in InlineEditCell display mode with opacity-0/group-hover:opacity-100 |
+| IXTN-03 | 03-03 | Inline edit saves show brief visual confirmation (row flash) | SATISFIED | flashRowId/errorRowId state + triggerFlash + color-mix inline style in all three trackers |
+| IXTN-05 | 03-02 | Category deletion triggers confirmation dialog | SATISFIED | pendingDelete state, confirmation Dialog, confirmDelete handler, Spinner in delete button |
+| STATE-01 | 03-02 | Dashboard empty state with CTA when no budgets | SATISFIED | DashboardPage renders EmptyState with "No budgets yet" heading and "Create your first budget" CTA |
+| STATE-02 | 03-02 | Categories page empty state with create CTA | SATISFIED | CategoriesPage renders EmptyState with "No categories yet" and "Add a category" action; loading guard prevents flash |
+| STATE-03 | 03-03 | Loading skeletons with pastel-tinted backgrounds | SATISFIED | DashboardPage loading skeleton uses palette.bill/variable_expense/debt/investment/saving.light; tracker empty states use matching palette key |
+
+**Note on IXTN-02 test coverage:** IXTN-02 is listed in plan 03-00's `requirements` field but has no dedicated it.skip stub in any of the 4 Wave 0 test files. This is because the pencil icon behavior is tested in the existing `InlineEditCell.test.tsx` (which predates Phase 3 Wave 0), not in a new stub file. The test at line 108 verifies DOM presence. This is acceptable — the requirement is covered, just not via a Wave 0 stub.
+
+---
+
+### Anti-Patterns Found
+
+| File | Pattern | Severity | Impact |
+|------|---------|----------|--------|
+| `InlineEditCell.test.tsx` | `act()` warning in test output (not wrapped) | Info | Tests still pass; warning is cosmetic — does not block functionality |
+| `CategoriesPage.test.tsx` | `act()` warning in test output | Info | Same as above |
+| `BudgetSetup.test.tsx:28-36` | Two `it.skip` stubs for IXTN-01 remain unskipped | Info | These are intentional Wave 0 stubs pending full TDD implementation; not blockers |
+
+No blocker or warning-level anti-patterns found. No placeholder implementations, no stub returns, no TODO comments in implementation files.
+
+---
+
+### Human Verification Required
+
+#### 1. Pencil Icon Hover Affordance
+
+**Test:** Open the dashboard with a budget that has items. Hover over any amount cell in BillsTracker, VariableExpenses, or DebtTracker.
+**Expected:** A small pencil icon fades in to the right of the value. Moving the mouse away causes it to fade out.
+**Why human:** CSS `group-hover:opacity-100` transitions cannot be observed in jsdom. The `data-testid="pencil-icon"` DOM presence is verified programmatically, but the visual fade requires a real browser.
+
+#### 2. Row Flash on Successful Inline Edit Save
+
+**Test:** Click an amount cell to enter edit mode, change the value, then press Enter or click away.
+**Expected:** The entire row briefly flashes green (approximately 600ms) then returns to its normal background color.
+**Why human:** The `color-mix(in oklch, var(--success) 20%, transparent)` inline style is applied then cleared via `setTimeout`, which requires the CSS custom property `--success` to be resolved in a real browser. Unit tests cannot observe ephemeral state changes.
+
+#### 3. Row Flash on Failed Inline Edit Save
+
+**Test:** Disconnect the backend network, then attempt to save an inline edit.
+**Expected:** The row flashes red briefly, and the cell value reverts to its previous number.
+**Why human:** Same as above — requires a real browser and a controlled network failure scenario.
+
+#### 4. Dashboard Loading State Skeleton Colors
+
+**Test:** Hard-refresh the dashboard with an account that has budgets (trigger initial loading state).
+**Expected:** While loading, colored skeleton tiles appear — a blue-tinted rectangle for bills, amber for variable expenses, red for debt, purple for savings/investments — not generic grey.
+**Why human:** Pastel tint quality requires visual inspection; the inline styles are verified programmatically but color rendering depends on browser CSS support.
+
+---
+
+### Build and Test Summary
+
+- **Full test suite:** 43 passing, 11 skipped (intentional Wave 0 stubs) — green
+- **Production build:** Zero TypeScript errors; 2545 modules transformed successfully
+- **InlineEditCell tests:** 9/9 passing (includes all new Phase 3 tests)
+- **BudgetSetup, LoginPage, RegisterPage tests:** 16/16 passing
+- **CategoriesPage, DashboardPage, BillsTracker tests:** 3/3 passing (smoke tests)
+
+---
+
+_Verified: 2026-03-11T22:40:00Z_
+_Verifier: Claude (gsd-verifier)_