Good deeds are things we do in response to the Holy Spirit's leadings and promptings, which is in stark contrast to works of the flesh, which refer to things we do apart from God.
When done in response to His Spirit, our good deeds are pleasing to our Lord, but the things we do apart from Him, in an attempt to form our own brand of righteousness, are like filthy rags before Him:
"But we are all like an unclean thing,
And all our righteousnesses are like filthy rags;
We all fade as a leaf,
And our iniquities, like the wind,
Have taken us away." (Isaiah 64:6)
But, much to the contrary, when we obey what the Lord puts on our hearts to do, out of unfeigned love and devotion to Him from a heart on fire to please Him, God does indeed smile and we are indeed blessed:
Now it shall come to pass, if you diligently obey the voice of the Lord your God, to observe carefully all His commandments which I command you today, that the Lord your God will set you high above all nations of the earth. And all these blessings shall come upon you and overtake you, because you obey the voice of the Lord your God:
Blessed shall you be in the city, and blessed shall you be in the country.
Blessed shall be the fruit of your body, the produce of your ground and the
increase of your herds, the increase of your cattle and the offspring of your flocks.
Blessed shall be your basket and your kneading bowl.
Blessed shall you be when you come in, and blessed shall you be when you go out.
"The Lord will cause your enemies who rise against you to be defeated before your face; they shall come out against you one way and flee before you seven ways.
The Lord will command the blessing on you in your storehouses and in all to which you set your hand, and He will bless you in the land which the Lord your God is giving you.
The Lord will establish you as a holy people to Himself, just as He has sworn to you, if you keep the commandments of the Lord your God and walk in His ways. Then all peoples of the earth shall see that you are called by the name of the Lord, and they shall be afraid of you. And the Lord will grant you plenty of goods, in the fruit of your body, in the increase of your livestock, and in the produce of your ground, in the land of which the Lord swore to your fathers to give you. The Lord will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow. And the Lord will make you the head and not the tail; you shall be above only, and not be beneath, if you heed the commandments of the Lord your God, which I command you today, and are careful to observe them. So you shall not turn aside from any of the words which I command you this day, to the right or the left, to go after other gods to serve them." (Deuteronomy 28:1-14)
In Old Testament days, before Jesus died for the sins of the world, the only way to be reconciled to God was to present Him with an acceptable sacrifice, in accordance with His Laws, but because of the Supreme Sacrifice of our Lord Jesus, we are no longer under Old Testament law, but free to follow the glorious leading of God's Spirit:
Has the Lord as great delight in burnt offerings and sacrifices,
As in obeying the voice of the Lord?
Behold, to obey is better than sacrifice,
And to heed than the fat of rams." (1Samuel 15:22)
Moreover, our Heavenly blessings provide far more security than any man-made insurance policy ever could:
"And the Lord commanded us to observe all these statutes, to fear the Lord our God, for our good always, that He might preserve us alive, as it is this day." (Deuteronomy 6:24)
Also noteworthy, believers should check their true motives; making certain that they are being led by God and not their own desires, in order to prevent those "filthy rags" from getting in the way and causing missteps in our walk:
"And we are His witnesses to these things, and so also is the Holy Spirit whom God has given to those who obey Him. (Acts 5:32)
"for not the hearers of the law are just in the sight of God, but the doers of the law will be justified;" (Romans 2:13)
"Now we know that God does not hear sinners; but if anyone is a worshiper of God and does His will, He hears him." (John 9:31)
Now that we have this understanding, perhaps we can correctly discern this passage in James that has been known to cause much confusion over the good deeds that God desires as opposed to the works of the flesh that are like filthy rags before the Lord......
Faith Without Works Is Dead
"What does it profit, my brethren, if someone says he has faith but does not have works? Can faith save him? If a brother or sister is naked and destitute of daily food, and one of you says to them, Depart in peace, be warmed and filled, but you do not give them the things which are needed for the body, what does it profit? Thus also faith by itself, if it does not have works, is dead.
But someone will say, You have faith, and I have works. Show me your faith without your works, and I will show you my faith by my works. You believe that there is one God. You do well. Even the demons believe and tremble! But do you want to know, O foolish man, that faith without works is dead? Was not Abraham our father justified by works when he offered Isaac his son on the altar? Do you see that faith was working together with his works, and by works faith was made perfect? And the Scripture was fulfilled which says, Abraham believed God, and it was accounted to him for righteousness. And he was called the friend of God. You see then that a man is justified by works, and not by faith only. Likewise, was not Rahab the harlot also justified by works when she received the messengers and sent them out another way? For as the body without the spirit is dead, so faith without works is dead also." (James 2:14-26)
Furthermore, We Will Be Held Accountable...
"But in accordance with your hardness and your impenitent heart you are treasuring up for yourself wrath in the day of wrath and revelation of the righteous judgment of God, who will render to each one according to his deeds:" (Romans 2:5-6)
"And I saw the dead, small and great, standing before God, and books were opened. And another book was opened, which is the Book of Life. And the dead were judged according to their works, by the things which were written in the books." (Revelation 20:12)
God's Word does not contradict itself, it is only through human error, that we fail to rightly divide the Word of Truth.
That being said, legalism may come to mind, however, legalism is more like works of the flesh than good deeds. It is similar because it drives some people into "good works" for the church and the like. But these "works" are not precious in God's Eyes, like the good deeds that He inspires. These are things we do to elevate ourselves; primarily for the advancement of our own agendas, not to mention the adherence to rituals that support ceremonial law.
Our best, most clear example of what not to do (anything born of legalism) is the Sadducees and Pharisees that Jesus rebuked so often all throughout much of His Gospels.
Verses on the Pharisees/Sadducees: Acts 4:1-3 & 5:17-18, Matthew 3:7-10, 16:6-12, 21:28-45 & 22:23-32, Mark 12:18-27 & Luke 20:27-38
More on Blessings: Leviticus 26:3-10 & 18:5, Deuteronomy 6:25, 28:1-2, 30:2 & 9-10, Ezekiel 18:21, Isaiah 1:19 & 48:18 & Luke 11:28
Paul's Epistles also help us understand legalism--
Galatians 2:21, 4:1-7 & 5:13-15, Romans 9:31-32 & Ephesians 2:8
NKJV
