So good works are evidence of honest faith, and a lack of them is evidence for a lack thereof (even if they profess to have it)? James is just saying that faith without works is evidence that that faith isn't genuine
I'm late to the party, but if it's okay for me to offer my own thoughts here: I'd say this is an accurate summation. But what is absolutely critical is that we do not gauge our standing before God on our works, and especially it is not within our rights to judge our brother on this.
So, yes, as Luther says, faith does not ask if one should do good works, faith simply
does them without asking if they should be done. So, indeed, faith without works is dead; but it is not on account of the works themselves that we measure our place before God or reckon ourselves justified: this is by the Grace of God alone in what He has done already for us in Christ Jesus, which He has imputed to us freely and which is apprehended through faith which is itself the gift of God.
Two really helpful terms here: Coram Deo and Coram Hominibus. They translate to "Before God" and "Before man". Before God we are to understand our relationship to Him as being entirely by His grace, through the Gospel, clung to through faith. Before our fellow man we are to understand our relationship with our neighbors as being through our works, according to God's Law. Or to put it another way: God doesn't need our good works, but our neighbor does. God doesn't need our good works because even our best works aren't going to impress Him, and because even our best works are tainted by sin; but nevertheless our neighbor needs food, needs a roof over their head, needs medicine, needs to be loved, comforted, given kindness, and to be treated justly and rightly. God cares about His creatures, so that means God cares about our fellow man, and if we have faith--the faith which He has given us--to trust and believe upon Christ, then the love with which He loves us and the world is the same love we should go out into the world with, loving our neighbor as ourself. If we have not love, we are but a noisy gong or a clanging cymbal.
So it is about rightly understanding the role of faith and the role of good works: faith is that through which God turns us toward Himself, freely justifying us, and clothing us with the righteousness of Jesus; good works is that which is to be done out of a thankful, gracious heart that has been redeemed and freely forgiven. The former is about our hope in Christ and the life everlasting, the latter is about our place here in the world among a broken, hurting creation as the redeemed, cross-bearing people of God
Also, if faith is sufficient for justification, are good works part of the mechanism for sanctification? Is working towards sanctification (but obviously not completing it) while alive on Earth a requirement to enter heaven? Sorry, I'm really struggling with all this, it's very confusing. It's hard for me to see the difference between other denominations' views of faith alone versus faith plus works.
Insofar as sanctification is that by which God is conforming us to the image of His Son, then good works are a fundamental part of that. But there is no heavenly scale, there are not merits to be earned, no points to be scored; the works are to be done for the sake of the works themselves, not out of hope for reward. Our hope of the future world does not depend on our works or our "progress" in this life--in this life we will remain sinful beggars, and it is only by clinging to the hope and promises of God which are found in Christ that we can look forward to the future life which God has promised us by Christ's death and resurrection. So, no, our works do not get us "into heaven", but they are essential as we are servants of Jesus Christ called to minister and serve our fellow man in love and mercy; and such works flow from a faithful and thankful heart.
It's that critical distinction between Coram Deo and Coram Hominibus, of Gospel and Law, never confusing one for the other, and never denying one or the other.
-CryptoLutheran