Edgar Filing: EVERGREEN INCOME ADVANTAGE FUND

Evergreen Income Advantage Fund

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-21269
___________________________________

Evergreen Income Advantage Fund
_____________________________________________________________
(Exact name of registrant as specified in charter)

200 Berkeley Street
Boston, Massachusetts 02116
_____________________________________________________________
(Address of principal executive offices) (Zip code)

Michael H. Koonce, Esq.
200 Berkeley Street
Boston, Massachusetts 02116
____________________________________________________________
(Name and address of agent for service)

Registrant's telephone number, including area code: (617) 210-3200
________________________

Date of fiscal year end: Registrant is making an annual filing for 1 of its series, Evergreen Income Advantage Fund, for the year ended April 30, 2005. These 1 series have a 4/30 fiscal year end.

Date of reporting period: April 30, 2005

Item 1 - Reports to Stockholders.


		table of contents
1		LETTER TO SHAREHOLDERS
4		FINANCIAL HIGHLIGHTS
5		SCHEDULE OF INVESTMENTS
14		STATEMENT OF ASSETS AND LIABILITIES
15		STATEMENT OF OPERATIONS
16		STATEMENTS OF CHANGES IN NET ASSETS
17		NOTES TO FINANCIAL STATEMENTS
23		REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
24		AUTOMATIC DIVIDEND REINVESTMENT PLAN
25		ADDITIONAL INFORMATION
28		TRUSTEES AND OFFICERS

The fund will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q will be available on the SEC's Web site at http://www.sec.gov. In addition, the fund's Form N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800.SEC.0330.

A description of the fund's proxy voting policies and procedures, as well as information regarding how the fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available by visiting our Web site at EvergreenInvestments.com or by visiting the SEC's Web site at http://www.sec.gov. The fund's proxy voting policies and procedures are also available without charge, upon request, by calling 800.343.2898.


Mutual Funds:
NOT FDIC INSURED	MAY LOSE VALUE	NOT BANK GUARANTEED

LETTER TO SHAREHOLDERS

June 2005

Dennis H. Ferro
President and Chief
Executive Officer

Dear Shareholder,

We are pleased to provide the annual report for the Evergreen Income Advantage Fund, which covers the twelve-month period ended April 30, 2005.

The portfolio management team for the Evergreen Income Advantage Fund had to overcome a variety of challenges over the past year. Moderating economic growth and less accommodation from the Federal Reserve (Fed) were chief among them, along with the increased volatility associated with the market's attempts to divine the degree to which interest rates would rise. Despite tighter monetary policy from the Fed, the Treasury bond yield curve continued to flatten, providing yet another intellectual hurdle for bond market participants to overcome. In utilizing Evergreen's outlook for moderate Gross Domestic Product (GDP) growth and a gradual tightening of monetary policy, the managers of the Fund positioned the portfolio with a more conservative slant, emphasizing higher quality issues within their universe.

The fiscal year began with the confusing message that the economy's growth was good, but no longer great. As a result, market interest rates declined on the perceived weakness. Adding to the confusion, a variety of data offered conflicting reads on the economy, such as strong retail sales in conjunction with poor levels of consumer confidence. Throughout this confusion, we maintained our belief that the economy was simply transitioning from recovery to

LETTER TO SHAREHOLDERS continued

expansion, causing many economic reports to point in different directions. Historically, the maturation of the economic cycle had experienced similarly erratic behavior. Yet market interest rates began to fluctuate with seemingly every monthly data point. Moreover, the costs for commodities and energy were rising, and since inflation-adjusted interest rates had remained low for such a lengthy period, the Fed seemed determined to prevent inflation from becoming a long-term problem. As job growth began to exceed expectations, the market's inflation fears accelerated, and yields headed higher in anticipation of a tighter Fed policy.

The Fed finally began their "measured removal of policy accommodation" beginning last June. After three years of stimulative policy actions, monetary policymakers began the journey towards more moderate economic growth. Fed Chairman Alan Greenspan was very transparent in his public statements, attempting to assuage market angst. Market interest rates, though, still remained quite volatile. Only after the central bank's first few rate increases did the long-end of the yield curve begin to recover, a process that would continue for the bulk of the fiscal year. Chairman Greenspan, however, remained concerned about "complacency" within the bond market, as evidenced by his comments to congressional banking committees in February that it was a "conundrum" that long-term yields still remained low. These comments managed to move yields higher for only a short while, though, as the fixed income markets concluded that long-term inflation was under control.

LETTER TO SHAREHOLDERS continued

We encourage our investors to maintain their diversified, long-term strategies, including municipal securities, within their fixed income portfolios.

Please visit our Web site, EvergreenInvestments.com, for more information about our funds and other investment products available to you. From the Web site, you may also access a detailed Q & A interview with the portfolio manager(s) for your fund. You can easily reach these interviews by following the link, EvergreenInvestments.com/AnnualUpdates, from our Web site. Thank you for your continued support of Evergreen Investments.

Sincerely,

Dennis H. Ferro
President and Chief Executive Officer
Evergreen Investment Company, Inc.

Special Notice to Shareholders:

Please visit our Web site at EvergreenInvestments.com for statements from President and Chief Executive Officer, Dennis Ferro, and Chairman of the Board of the Evergreen Funds, Michael S. Scofield, addressing recent SEC actions involving the Evergreen Funds.

FINANCIAL HIGHLIGHTS

(For a common share outstanding throughout each period)


	YearEnded April 30,

	2005		2004	2003 ¹

Net asset value, beginning of period	$ 15.62		$ 14.92	$ 14.33 ²

Income from investment operations
Net investment income (loss)	1.56		1.76	0.17
Net realized and unrealized gains or losses on securities and interest rate swap transactions	(0.65)		0.68	0.67
Distributions to preferred shareholders from ³
Net investment income	(0.14)		(0.09)	0 ⁴
Net realized gains	(0.01)		0	0

Total from investment operations	0.76		2.35	0.84

Distributions to common shareholders from
Net investment income	(1.64)		(1.65)	(0.14)
Net realized gains	(0.33)		0	0

Total distributions to common shareholders	(1.97)		(1.65)	(0.14)

Offering costs charged to capital for
Common shares	0		0	(0.03)
Preferred shares	0		0	(0.08)

Total offering costs	0		0	(0.11)

Net asset value, end of period	$ 14.41		$ 15.62	$ 14.92

Market value, end of period	$ 14.24		$ 14.44	$ 15.11

Total return based on market value ⁵	12.07%		6.55%	1.66%

Ratios and supplemental data
Net assets of common shareholders, end of period (thousands)	$966,835	$1,035,766		$979,903
Liquidation value of preferred shares, end of period (thousands)	$490,000		$490,000	$490,000
Asset coverage ratio, end of period	297%		311%	300%
Ratios to average net assets applicable to common shareholders
Expenses including waivers/reimbursements and excluding expense reductions	1.15%		1.15%	0.77% ⁶
Expenses excluding waivers/reimbursements and expense reductions	1.15%		1.15%	0.77% ⁶
Net investment income (loss) ⁷	10.03%		10.56%	6.66% ⁶
Portfolio turnover rate	63%		49%	2%

¹ For the period from February 28, 2003 (commencement of class operations), to April 30, 2003.

² Initial public offering price of $15.00 per share less underwriting discount of $0.67 per share.

³ Distributions to preferred shareholders per common share are based on average common shares outstanding during the period.

⁴ Amount represents less than $0.005 per share.

⁵ Total return is calculated assuming a purchase of common stock on the first day and a sale on the last day of each period reported.

Dividends and distributions are assumed for purposes of these calculations to reinvested at prices obtained under the Fund's Automatic

Dividend Reinvestment Plan. Total return does not reflect brokerage commissions or sales charges.

⁶ Annualized

⁷ The net investment income (loss) ratio reflects distributions to preferred shareholders.

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS

April 30, 2005


	Principal
	Amount		Value


CORPORATE BONDS 136.5%
CONSUMER DISCRETIONARY 40.9%
Auto Components 1.5%
RJ Tower Corp., 12.00%, 06/01/2013 (p) •	$ 3,060,000	$	1,637,100
Tenneco Automotive, Inc., 8.625%, 11/15/2014 (p) 144A	14,350,000		13,166,125

			14,803,225

Hotels, Restaurants & Leisure 12.2%
Ameristar Casinos, Inc., 10.75%, 02/15/2009	10,000,000		10,925,000
Equinox Holdings, Inc., 9.00%, 12/15/2009 (p)	10,930,000		11,230,575
Gaylord Entertainment Co., 6.75%, 11/15/2014 144A	2,500,000		2,325,000
Herbst Gaming, Inc., 7.00%, 11/15/2014 144A	7,300,000		7,190,500
Inn of The Mountain Gods Resort & Casino, 12.00%, 11/15/2010 (p)	7,000,000		8,242,500
Isle of Capri Casinos, Inc., 7.00%, 03/01/2014 (p)	7,500,000		7,312,500
John Q. Hammons Hotels LP, Ser. B, 8.875%, 05/15/2012	12,995,000		13,904,650
La Quinta Corp., 8.875%, 03/15/2011	10,500,000		11,353,125
Las Vegas Sands Corp., 6.375%, 02/15/2015 (p) 144A	5,830,000		5,494,775
Mandalay Resort Group, Ser. B, 10.25%, 08/01/2007	10,000,000		11,025,000
MGM MIRAGE, Inc., 5.875%, 02/27/2014 (p)	4,500,000		4,235,625
Station Casinos, Inc.:
6.50%, 02/01/2014 (p)	3,650,000		3,659,125
6.875%, 03/01/2016 (p)	3,650,000		3,704,750
Town Sports International, Inc., 9.625%, 04/15/2011 (p)	6,325,000		6,522,656
Wynn Resorts, Ltd., 6.625%, 12/01/2014 144A	11,280,000		10,603,200

			117,728,981

Household Durables 2.5%
Jarden Corp., 9.75%, 05/01/2012	6,475,000		6,928,250
K. Hovnanian Enterprises, Inc., 7.75%, 05/15/2013 (p)	7,000,000		7,157,500
Meritage Homes Corp., 6.25%, 03/15/2015 144A	4,050,000		3,746,250
Technical Olympic USA, Inc.:
7.50%, 03/15/2011	1,500,000		1,402,500
10.375%, 07/01/2012	4,800,000		5,064,000

			24,298,500

Leisure Equipment & Products 1.9%
AMC Entertainment, Inc., 8.625%, 08/15/2012 (p) 144A	11,430,000		11,915,775
Riddell Bell Holdings, Inc., 8.375%, 10/01/2012 144A	6,105,000		6,181,312

			18,097,087

Media 14.2%
Cablevision Systems Corp., 8.00%, 04/15/2012 (p) 144A	15,635,000		15,498,194
CCO Holdings LLC, 8.75%, 11/15/2013 (p)	7,500,000		7,256,250
Charter Communications Holdings LLC, 8.625%, 04/01/2009 (p)	14,000,000		10,185,000
Cinemark USA, Inc.:
9.00%, 02/01/2013	12,000,000		12,750,000
Sr. Disc. Note, Step Bond, 0.00%, 03/15/2014 †	7,225,000		5,003,312
Dex Media East LLC, 9.875%, 11/15/2009	13,500,000		14,850,000
Emmis Communications Corp., 6.875%, 05/15/2012	7,350,000		7,294,875
Houghton Mifflin Co., 9.875%, 02/01/2013 (p)	7,000,000		7,105,000

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount		Value

CORPORATE BONDS continued
CONSUMER DISCRETIONARY continued
Media continued
Marquee Holdings, Inc., Sr. Disc. Note, Step Bond, 0.00%, 08/15/2014 144A †	$12,850,000	$	8,095,500
Mediacom LLC, 9.50%, 01/15/2013 (p)	15,250,000		14,678,125
PRIMEDIA, Inc., 8.875%, 05/15/2011	5,030,000		5,231,200
Sinclair Broadcast Group, Inc., 8.00%, 03/15/2012 (p)	12,500,000		12,468,750
Visant Corp., 7.625%, 10/01/2012	7,465,000		7,502,325
WMG Holdings Corp., 7.39%, 12/15/2011 144A	9,000,000		9,315,000

			137,233,531

Multi-line Retail 1.5%
J.C. Penney Co., Inc., 7.375%, 08/15/2008 (p)	14,000,000		14,910,000

Specialty Retail 4.9%
American Achievement Corp., 8.25%, 04/01/2012	6,155,000		6,355,038
Central Garden & Pet Co., 9.125%, 02/01/2013	7,000,000		7,560,000
CSK Auto, Inc., 7.00%, 01/15/2014	7,675,000		6,984,250
FTD, Inc., 7.75%, 02/15/2014	7,359,000		7,359,000
PETCO Animal Supplies, Inc., 10.75%, 11/01/2011	10,000,000		11,150,000
United Auto Group, Inc., 9.625%, 03/15/2012	8,000,000		8,360,000

			47,768,288

Textiles, Apparel & Luxury Goods 2.2%
Norcross Safety Products LLC:
11.75%, 01/01/2012 144A	1,915,000		1,953,300
Ser. B, 9.875%, 08/15/2011	2,750,000		2,915,000
Oxford Industries, Inc., 8.875%, 06/01/2011	12,000,000		12,480,000
The Warnaco Group, Inc., 8.875%, 06/15/2013	3,200,000		3,472,000

			20,820,300

CONSUMER STAPLES 6.0%
Food & Staples Retailing 1.6%
Ingles Markets, Inc., 8.875%, 12/01/2011	7,000,000		7,017,500
Roundy's, Inc., Ser. B, 8.875%, 06/15/2012 (p)	8,175,000		8,502,000

			15,519,500

Food Products 1.8%
B&G Foods Holdings Corp., 8.00%, 10/01/2011 (p)	585,000		606,938
Chiquita Brands International, Inc., 7.50%, 11/01/2014 (p)	2,460,000		2,263,200
Del Monte Corp.:
6.75%, 02/15/2015 144A	1,600,000		1,544,000
8.625%, 12/15/2012	9,217,000		9,908,275
Michael Foods, Inc., 8.00%, 11/15/2013	3,400,000		3,502,000

			17,824,413

Household Products 0.8%
Rayovac Corp., 7.375%, 02/01/2015 144A	8,010,000		7,809,750

Personal Products 1.0%
Playtex Products, Inc., 8.00%, 03/01/2011	9,000,000		9,652,500

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount		Value


CORPORATE BONDS continued
CONSUMER STAPLES continued
Tobacco 0.8%
Commonwealth Brands, Inc., 10.625%, 09/01/2008 144A	$ 7,000,000	$	7,350,000

ENERGY 14.8%
Energy Equipment & Services 5.8%
Dresser, Inc., 9.375%, 04/15/2011	14,000,000		14,700,000
Exide Technologies, 10.50%, 03/15/2013 144A (p)	6,080,000		5,183,200
Grant Prideco, Inc., 9.00%, 12/15/2009	12,750,000		13,961,250
Gulfmark Offshore, Inc., 7.75%, 07/15/2014 144A	4,100,000		4,161,500
Hornbeck Offshore Services, Ser. B, 6.125%, 12/01/2014 (p)	2,100,000		2,081,625
Parker Drilling Co.:
9.625%, 10/01/2013 144A	8,125,000		8,978,125
Ser. B, 9.625%, 10/01/2013 (p)	3,830,000		4,232,150
SESI LLC, 8.875%, 05/15/2011	2,000,000		2,150,000

			55,447,850

Oil, Gas & Consumable Fuels 9.0%
Chesapeake Energy Corp.:
6.375%, 06/15/2015 144A	5,375,000		5,294,375
6.875%, 01/15/2016	3,360,000		3,360,000
7.50%, 09/15/2013	7,000,000		7,420,000
7.75%, 01/15/2015	3,500,000		3,701,250
El Paso Corp.:
7.75%, 01/15/2032 (p)	7,500,000		6,937,500
7.875%, 06/15/2012 (p)	7,050,000		6,926,625
El Paso Production Holding Co., 7.75%, 06/01/2013	10,500,000		10,631,250
Exco Resources, Inc., 7.25%, 01/15/2011	2,245,000		2,222,550
Overseas Shipholding Group, Inc., 8.25%, 03/15/2013	12,050,000		12,833,250
Plains Exploration & Production Co., 8.75%, 07/01/2012	2,500,000		2,712,500
Premcor Refining Group, Inc., 9.50%, 02/01/2013	6,500,000		7,410,000
The Williams Companies, Inc.:
7.50%, 01/15/2031 (p)	6,750,000		7,003,125
8.125%, 03/15/2012	9,750,000		10,725,000

			87,177,425

FINANCIALS 8.7%
Consumer Finance 2.1%
General Motors Acceptance Corp., 6.125%, 09/15/2006	14,000,000		13,921,012
Triad Financial Corp., 11.125%, 05/01/2013 144A	6,500,000		6,475,625

			20,396,637

Diversified Financial Services 1.8%
Arch Western Finance LLC, 6.75%, 07/01/2013	7,125,000		7,178,437
Borden US Finance Corp., 9.00%, 07/15/2014 144A	2,200,000		2,211,000
Metris Companies, Inc., 10.125%, 07/15/2006 (p)	8,333,000		8,374,665

			17,764,102

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount		Value


CORPORATE BONDS continued
FINANCIALS continued
Insurance 0.8%
Crum & Forster Holdings Corp., 10.375%, 06/15/2013	$ 6,750,000	$	7,357,500

Real Estate 4.0%
Crescent Real Estate Equities Co., REIT, 9.25%, 04/15/2009	7,425,000		7,834,630
HMH Properties, Inc., Ser. B, REIT, 7.875%, 08/01/2008 (p)	1,701,000		1,743,525
Host Marriott Corp., Ser. J, REIT, 7.125%, 11/01/2013 (p)	15,000,000		15,262,500
Omega Healthcare Investors, Inc., REIT:
6.95%, 08/01/2007	4,255,000		4,345,419
7.00%, 04/01/2014	1,400,000		1,358,000
Thornburg Mortgage Inc., REIT, 8.00%, 05/15/2013	7,825,000		7,903,250

			38,447,324

HEALTH CARE 9.6%
Health Care Equipment & Supplies 1.6%
Universal Hospital Services, Inc., 10.125%, 11/01/2011	14,715,000		14,972,512

Health Care Providers & Services 8.0%
Carriage Services, Inc., 7.875%, 01/15/2015 144A	3,600,000		3,636,000
Extendicare, Inc., 9.50%, 07/01/2010	13,000,000		14,186,250
HCA, Inc., 6.375%, 01/15/2015	7,525,000		7,589,775
IASIS Healthcare Corp., 8.75%, 06/15/2014	5,100,000		5,265,750
Select Medical Corp., 7.625%, 02/01/2015 144A	8,150,000		8,048,125
Service Corporation International, 6.75%, 04/01/2016 (p)	7,475,000		7,157,313
Team Health, Inc., 9.00%, 04/01/2012 (p)	8,675,000		8,675,000
Tenet Healthcare Corp., 9.875%, 07/01/2014	11,230,000		11,594,975
Triad Hospital, Inc., 7.00%, 05/15/2012	11,000,000		11,330,000

			77,483,188

INDUSTRIALS 10.5%
Aerospace & Defense 0.6%
Argo-Tech Corp., 9.25%, 06/01/2011	1,640,000		1,763,000
Moog, Inc., 6.25%, 01/15/2015	4,614,000		4,590,930

			6,353,930

Commercial Services & Supplies 4.9%
Allied Waste North America, Inc.:
5.75%, 02/15/2011 (p)	4,080,000		3,600,600
6.375%, 04/15/2011 (p)	4,075,000		3,728,625
American Color Graphics, Inc., 10.00%, 06/15/2010 (p)	7,250,000		4,676,250
Clean Harbors, Inc., 11.25%, 07/15/2012 144A	7,950,000		8,864,250
Corrections Corporation of America, 6.25%, 03/15/2013 144A	3,825,000		3,710,250
Geo Group, Inc., 8.25%, 07/15/2013	4,875,000		4,911,563
JohnsonDiversey Holdings, Inc., Sr. Disc. Note, Step Bond, 0.00%, 05/15/2013 †	8,500,000		6,757,500
TriMas Corp., 9.875%, 06/15/2012	11,025,000		10,914,750

			47,163,788

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount		Value


CORPORATE BONDS continued
INDUSTRIALS continued
Machinery 3.5%
Case New Holland, Inc., 9.25%, 08/01/2011 144A	$13,000,000	$	13,325,000
Douglas Dynamics LLC, 7.75%, 01/15/2012 144A	5,385,000		5,304,225
Dresser Rand Group, Inc., 7.375%, 11/01/2014 144A	6,375,000		6,247,500
Terex Corp., 7.375%, 01/15/2014	8,750,000		8,837,500

			33,714,225

Trading Companies & Distributors 1.5%
United Rentals, Inc., 7.75%, 11/15/2013 (p)	15,000,000		14,137,500

INFORMATION TECHNOLOGY 5.7%
Communications Equipment 1.5%
Lucent Technologies, Inc., 6.45%, 03/15/2029 (p)	16,800,000		14,259,000

Electronic Equipment & Instruments 1.0%
Da-Lite Screen Co., Inc., 9.50%, 05/15/2011	8,850,000		9,712,875

Internet Software & Services 1.5%
UGS Corp., 10.00%, 06/01/2012 144A	14,060,000		15,114,500

IT Services 1.7%
Computer Sciences Corp., 9.50%, 02/15/2013 144A	10,100,000		9,746,500
Stratus Technologies, Inc., 10.375%, 12/01/2008	5,000,000		4,900,000
Unisys Corp., 6.875%, 03/15/2010 (p)	1,500,000		1,443,750

			16,090,250

MATERIALS 28.9%
Chemicals 9.8%
Arco Chemical Co., 9.80%, 02/01/2020 (p)	4,050,000		4,495,500
Equistar Chemicals LP, 10.625%, 05/01/2011 (p)	14,000,000		15,680,000
Ethyl Corp., 8.875%, 05/01/2010	12,000,000		12,690,000
Huntsman Advanced Materials LLC, 11.00%, 07/15/2010 144A	6,500,000		7,442,500
Huntsman International LLC:
9.875%, 03/01/2009	7,000,000		7,560,000
11.50%, 07/15/2012 144A	8,085,000		9,338,175
Lyondell Chemical Co.:
9.50%, 12/15/2008	7,500,000		8,034,375
10.50%, 06/01/2013 (p)	6,500,000		7,523,750
Millenium America, Inc.:
7.625%, 11/15/2026	5,000,000		4,775,000
9.25%, 06/15/2008	4,000,000		4,280,000
PQ Corp., 7.50%, 02/15/2013 (p) 144A	7,655,000		7,463,625
Terra Capital, Inc., 11.50%, 06/01/2010	4,550,000		5,209,750

			94,492,675

Containers & Packaging 7.1%
Crown Holdings, Inc., 8.00%, 04/15/2023 (p)	17,000,000		16,150,000
Graham Packaging Co., 9.875%, 10/15/2014 (p) 144A	6,940,000		6,662,400
Graphic Packaging International, Inc., 9.50%, 08/15/2013 (p)	15,000,000		15,000,000

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount		Value


CORPORATE BONDS continued
MATERIALS continued
Containers & Packaging continued
Owens-Brockway Glass Containers, Inc.:
8.25%, 05/15/2013	$10,525,000	$	11,209,125
8.75%, 11/15/2012	12,150,000		13,304,250
Stone Container Corp., 9.75%, 02/01/2011 (p)	6,500,000		6,841,250

			69,167,025

Metals & Mining 7.2%
Alaska Steel Corp., 7.75%, 06/15/2012 (p)	11,150,000		9,979,250
Foundation Pennsylvania Coal Co., 7.25%, 08/01/2014	8,800,000		9,086,000
Freeport-McMoRan Copper & Gold, Inc.:
6.875%, 02/01/2014 (p)	4,750,000		4,488,750
10.125%, 02/01/2010 (p)	6,450,000		7,095,000
Oregon Steel Mills, Inc., 10.00%, 07/15/2009 (p)	10,500,000		11,313,750
Peabody Energy Corp.:
5.875%, 04/15/2016 (p)	11,175,000		10,895,625
6.875%, 03/15/2013	2,720,000		2,828,800
United States Steel Corp., 10.75%, 08/01/2008 (p)	12,612,000		14,251,560

			69,938,735

Paper & Forest Products 4.8%
Amscan Holdings, Inc., 8.75%, 05/01/2014	7,450,000		6,965,750
Boise Cascade LLC:
6.02%, 10/15/2012 144A	3,750,000		3,731,250
7.125%, 10/15/2014 144A	3,500,000		3,342,500
Bowater, Inc., 6.50%, 06/15/2013 (p)	7,250,000		6,615,625
Buckeye Technologies, Inc., 8.50%, 10/01/2013	7,500,000		7,837,500
Georgia Pacific Corp.:
8.00%, 01/15/2024	4,170,000		4,461,900
8.125%, 05/15/2011	12,000,000		13,185,000

			46,139,525

TELECOMMUNICATION SERVICES 7.8%
Diversified Telecommunication Services 3.9%
Consolidated Communications, Inc., 9.75%, 04/01/2012 144A	12,000,000		12,660,000
Hawaiian Telecom Communications, Inc.:
FRN, 8.91%, 05/01/2013 144A	5,025,000		4,999,875
9.75%, 05/01/2013 144A	4,000,000		3,995,000
Insight Midwest LP, 9.75%, 10/01/2009 (p)	8,000,000		8,400,000
Qwest Communications International, Inc., 7.875%, 09/01/2011 144A	7,300,000		7,446,000

			37,500,875

Wireless Telecommunication Services 3.9%
Alamosa Holdings, Inc., 8.50%, 01/31/2012 (p)	3,500,000		3,640,000
Centennial Communications Corp., 10.125%, 06/15/2013	10,000,000		10,975,000
Horizon PCS, Inc., 11.375%, 07/15/2012 144A	3,325,000		3,690,750
Nextel Communications, Inc., 7.375%, 08/01/2015	10,000,000		10,700,000
Rural Cellular Co., 8.25%, 03/15/2012 (p)	1,420,000		1,444,850

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount	Value

CORPORATE BONDS continued
TELECOMMUNICATION SERVICES continued
Wireless Telecommunication Services continued
UbiquiTel, Inc., 9.875%, 03/01/2011	$ 3,375,000	$ 3,670,312
US Unwired, Inc., Ser. B, 10.00%, 06/15/2012	3,325,000	3,665,813

		37,786,725

UTILITIES 3.6%
Multi-Utilities 3.6%
AES Corp., 7.75%, 03/01/2014 (p)	11,250,000	11,531,250
NRG Energy, Inc., 8.00%, 12/15/2013 144A	8,912,000	9,045,680
Reliant Resources, Inc.:
6.75%, 12/15/2014 (p)	8,150,000	7,253,500
9.25%, 07/15/2010 (p)	7,000,000	7,192,500

		35,022,930

Total Corporate Bonds (cost $1,325,624,637)		1,319,457,171

YANKEE OBLIGATIONS-CORPORATE 10.0%
CONSUMER DISCRETIONARY 1.8%
Hotels, Restaurants & Leisure 0.7%
Intrawest Corp., 7.50%, 10/15/2013	7,050,000	7,050,000

Media 1.1%
IMAX Corp., 9.625%, 12/01/2010 (p)	9,950,000	10,571,875

CONSUMER STAPLES 1.5%
Food & Staples Retailing 1.5%
Jean Coutu Group, Inc., 8.50%, 08/01/2014 (p)	14,750,000	13,975,625

FINANCIALS 1.8%
Diversified Financial Services 1.8%
Northern Telecom Capital Corp., 7.875%, 06/15/2026	9,000,000	9,000,000
Ship Finance International, Ltd., 8.50%, 12/15/2013	8,640,000	8,251,200

		17,251,200

INDUSTRIALS 0.7%
Marine 0.3%
CP Ships, Ltd., 10.375%, 07/15/2012	2,400,000	2,706,000

Transportation Infrastructure 0.4%
Sea Containers, Ltd., 10.50%, 05/15/2012	3,715,000	3,900,750

INFORMATION TECHNOLOGY 1.1%
Electronic Equipment & Instruments 0.8%
Celestica, Inc., 7.875%, 07/01/2011 (p)	7,805,000	7,805,000

Semiconductors & Semiconductor Equipment 0.3%
Magnachip Semiconductor SA:
FRN, 6.26%, 12/15/2011 144A	1,750,000	1,645,000
6.875%, 12/15/2011 144A	1,750,000	1,610,000

		3,255,000

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


	Principal
	Amount	Value

YANKEE OBLIGATIONS-CORPORATE continued
MATERIALS 2.3%
Containers & Packaging 0.2%
Stone Container Finance Co., 7.375%, 07/15/2014 (p)	$ 1,625,000	$ 1,503,125

Metals & Mining 1.6%
Gerdau Ameristeel Corp., 10.375%, 07/15/2011	1,231,000	1,347,945
Novelis, Inc., 7.25%, 02/15/2015 144A	14,750,000	14,344,375

		15,692,320

Paper & Forest Products 0.5%
Abitibi Consolidated, Inc., 6.00%, 06/20/2013 (p)	4,125,000	3,403,125
Tembec Industries, Inc., 7.75%, 03/15/2012 (p)	1,785,000	1,356,600

		4,759,725

TELECOMMUNICATION SERVICES 0.8%
Wireless Telecommunication Services 0.8%
Rogers Wireless, Inc.:
6.375%, 03/01/2014	3,485,000	3,354,312
7.50%, 03/15/2015	4,350,000	4,485,938

		7,840,250

Total Yankee Obligations-Corporate (cost $97,150,316)		96,310,870


	Shares	Value


WARRANTS 0.4%
CONSUMER DISCRETIONARY 0.0%
Media 0.0%
RCN Corp., Expiring 06/30/2013 * + (h)	2,110,000	0

TELECOMMUNICATION SERVICES 0.4%
Wireless Telecommunication Services 0.4%
American Tower Escrow Corp., Expiring 08/01/2008 *	17,500	4,261,302

Total Warrants (cost $1,421,436)		4,261,302

SHORT-TERM INVESTMENTS 27.5%
MUTUAL FUND SHARES 27.5%
Navigator Prime Portfolio (p)(p) (cost $265,688,293)	265,688,293	265,688,293

Total Investments (cost $1,689,884,682) 174.4%		1,685,717,636
Other Assets and Liabilities and Preferred Shares (74.4%)		(718,882,807)

Net Assets Applicable to Common Shareholders 100.0%		$ 966,834,829

See Notes to Financial Statements

SCHEDULE OF INVESTMENTS continued

April 30, 2005


(p)	All or a portion of this security is on loan.
•	Security which has defaulted on payment of interest and/or principal. The Fund has stopped accruing interest on this
	security.
144A	Security that may be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended.
	This security has been determined to be liquid under guidelines established by the Board of Trustees.
†	Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. An effective
	interest rate is applied to recognize interest income daily for the bond. This rate is based on total expected interest to be
	earned over the life of the bond which consists of the aggregate coupon-interest payments and discount at acquisition.
	The rate shown is the stated rate at the current period end.
*	Non-income producing security
+	Security is deemed illiquid and is valued using market quotations when readily available.
(h)	Security is valued at fair value as determined in good faith under procedures established by the Board of Trustees.
(p)(p)	Represents investment of cash collateral received from securities on loan.


Summaryof Abbreviations
FRN	Floating Rate Note
REIT	Real Estate Investment Trust

The following table shows the percent of total bonds by credit quality based on Moody's and Standard & Poor's ratings as of April 30, 2005 (unaudited):


BBB		1.0%
BB		22.7%
B		70.2%
CC		6.0%
NR		0.1%

		100.0%

The following table shows the percent of total bonds by maturity as of April 30, 2005 (unaudited):


1 to 3 year(s)		2.7%
3 to 5 years		11.4%
5 to 10 years		78.3%
10 to 20 years		4.6%
20 to 30 years		3.0%

		100.0%

See Notes to Financial Statements

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2005



Assets
Investments in securities, at value (cost $1,689,884,682) including $259,023,366
of securities loaned	$	1,685,717,636
Receivable from broker		360,346
Receivable for securities sold		25,553,683
Interest receivable		33,679,521
Receivable for securities lending income		55,715
Unrealized gains on interest rate swap transactions		9,168,220

Total assets		1,754,535,121

Liabilities
Dividends payable		8,595,921
Payable for securities purchased		9,025,000
Payable for securities on loan		265,688,293
Due to custodian bank		13,707,250
Advisory fee payable		72,028
Due to other related parties		6,002
Accrued expenses and other liabilities		173,671

Total liabilities		297,268,165

Preferred shares at redemption value
$25,000 liquidation value per share applicable to 19,600 shares, including dividends payable
of $432,127		490,432,127

Net assets applicable to common shareholders	$	966,834,829

Net assets applicable to common shareholders represented by
Paid-in capital	$	955,312,834
Overdistributed net investment income		(847,808)
Accumulated net realized gains on securities and interest rate swap transactions		7,368,629
Net unrealized gains on securities and interest rate swap transactions		5,001,174

Net assets applicable to common shareholders	$	966,834,829

Net asset value per share applicable to common shareholders
Based on $966,834,829 divided by 67,087,508 common shares issued and outstanding
(100,000,000 common shares authorized)	$	14.41

See Notes to Financial Statements

STATEMENT OF OPERATIONS

Year Ended April 30, 2005



Investment income
Interest income (net of foreign withholding taxes of $42,445)	$	123,709,853
Income from affiliates		784,248
Securities lending		424,244

Total investment income		124,918,345

Expenses
Advisory fee		9,098,881
Administrative services fee		758,240
Transfer agent fees		46,893
Trustees' fees and expenses		47,956
Printing and postage expenses		185,706
Custodian and accounting fees		310,386
Professional fees		54,142
Auction agent fees		1,286,912
Other		36,938

Total expenses		11,826,054
Less: Expense reductions		(7,989)
Expense reimbursements		(203)

Net expenses		11,817,862

Net investment income		113,100,483

Net realized and unrealized gains or losses on securities and interest rate
swap transactions
Net realized gains or losses on:
Securities		26,850,019
Interest rate swap transactions		(3,137,157)

Net realized gains on securities and interest rate swap transactions		23,712,862
Net change in unrealized gains or losses on securities and interest rate swap transactions		(76,423,477)

Net realized and unrealized gains or losses on securities and interest rate swap transactions		(52,710,615)
Distributions to preferred shareholders from
Net investment income		(9,367,586)
Net realized gains		(674,040)

Net increase in net assets applicable to common shareholders resulting from operations	$	50,348,242

See Notes to Financial Statements

STATEMENTS OF CHANGES IN NET ASSETS


	Year Ended April 30,

	2005	2004

Operations
Net investment income	$ 113,100,483	$ 113,276,185
Net realized gains on securities and interest rate swap transactions	23,712,862	10,757,680
Net change in unrealized gains or losses on securities and interest rate
swap transactions	(76,423,477)	36,732,394
Distributions to preferred shareholders from
Net investment income	(9,367,586)	(5,808,658)
Net realized gains	(674,040)	0

Net increase in net assets applicable to common shareholders resulting
from operations	50,348,242	154,957,601

Distributions to common shareholders from
Net investment income	(113,371,836)	(109,070,550)
Net realized gains	(18,002,382)	0

Total distributions to common shareholders	(131,374,218)	(109,070,550)

Capital share transactions
Net asset value of common shares issued under the Automatic
Dividend Reinvestment Plan	12,094,632	9,975,946

Total increase (decrease) in net assets applicable to common shareholders	(68,931,344)	55,862,997
Net assets applicable to common shareholders
Beginning of period	1,035,766,173	979,903,176

End of period	$ 966,834,829	$1,035,766,173

Undistributed (overdistributed) net investment income	$ (847,808)	$ 1,825,484

See Notes to Financial Statements

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

Evergreen Income Advantage Fund (the "Fund") was organized as a statutory trust under the laws of the state of Delaware on December 3, 2002 and is registered as a diversified closed-end management investment company under the Investment Company Act of 1940, as amended. The primary investment objective of the Fund is to seek a high level of current income. The Fund may, as a secondary objective, also seek capital appreciation to the extent consistent with its investment objective.

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles in the United States of America, which require management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates.

a. Valuation of investments

Portfolio debt securities acquired with more than 60 days to maturity are fair valued using matrix pricing methods determined by an independent pricing service which takes into consideration such factors as similar security prices, yields, maturities, liquidity and ratings. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of market value obtained from yield data relating to investments or securities with similar characteristics.

Listed equity securities are usually valued at the last sales price or official closing price on the national securities exchange where the securities are principally traded.

Short-term securities with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.

Investments in other mutual funds are valued at net asset value. Securities for which market quotations are not readily available or not reflective of current market value are valued at fair value as determined in good faith, according to procedures approved by the Board of Trustees.

b. Securities lending

The Fund may lend its securities to certain qualified brokers in order to earn additional income. The Fund receives compensation in the form of fees or interest earned on the investment of any cash collateral received. The Fund also continues to receive interest and dividends on the securities loaned. The Fund receives collateral in the form of cash or securities with a market value at least equal to the market value of the securities on loan, including accrued interest. In the event of default or bankruptcy by the borrower, the Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

c. Interest rate swaps

The Fund may enter into interest rate swap agreements to manage the Fund's exposure to interest rates. A swap agreement is an exchange of cash payments between the Fund and another party

NOTES TO FINANCIAL STATEMENTS continued

based on a notional principal amount. Cash payments or receipts are recorded as realized gains or losses. The value of the swap agreements is marked-to-market daily based upon quotations from market makers and any change in value is recorded as an unrealized gain or loss. The Fund could be exposed to risks if the counterparty defaults on its obligation to perform or if there are unfavorable changes in the fluctuation of interest rates.

d. Security transactions and investment income

Security transactions are recorded on trade date. Realized gains and losses are computed using the specific cost of the security sold. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Foreign income and capital gains realized on some securities may be subject to foreign taxes, which are accrued as applicable.

e. Federal taxes

The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income, including any net capital gains (which have already been offset by available capital loss carryovers). Accordingly, no provision for federal taxes is required.

f. Distributions

Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles.

Reclassifications have been made to the Fund's components of net assets to reflect income and gains available for distribution (or available capital loss carryovers, as applicable) under income tax regulations. The primary permanent differences causing such reclassifications are due to dividend redesignations, consent fees on tendered bonds and premium amortization. During the year ended April 30, 2005, the following amounts were reclassified:



Overdistributed net investment income	$	11,156,353
Accumulated net realized gains on securities
and interest rate swap transactions		(11,156,353)

g. Reclassifications

Certain amounts in previous years' financial statements have been reclassified to conform to the current year's presentation.

2. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Evergreen Investment Management Company, LLC ("EIMC"), an indirect, wholly-owned subsidiary of Wachovia Corporation ("Wachovia"), is the investment advisor to the Fund and is paid an annual fee of 0.60% of the Fund's average daily total assets applicable to common shareholders. Total assets consist of the net assets of the Fund plus borrowings or other leverage for investment purposes to the extent excluded in calculating net assets. The advisory fee would be

NOTES TO FINANCIAL STATEMENTS continued

equivalent to 0.89% of the Fund's average daily net assets applicable to common shareholders if the Fund is fully leveraged through the issuance of preferred shares and/or other borrowings. For the year ended April 30, 2005, the Fund had preferred shares issued and outstanding.

From time to time, EIMC may voluntarily or contractually waive its fee and/or reimburse expenses in order to limit operating expenses. During the year ended April 30, 2005, EIMC reimbursed other expenses in the amount of $203.

Evergreen Investment Services, Inc. ("EIS"), an indirect, wholly-owned subsidiary of Wachovia, is the administrator to the Fund. As administrator, EIS provides the Fund with facilities, equipment and personnel and is paid an annual administrative fee of 0.05% of the Fund's average daily total assets.

3. CAPITAL SHARE TRANSACTIONS

The Fund has authorized capital of 100,000,000 common shares with no par value. For the years ended April 30, 2005 and April 30, 2004, the Fund issued 772,533 and 657,975 common shares, respectively.

4. SECURITIES TRANSACTIONS

Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were $1,148,384,236 and $915,762,393, respectively, for the year ended April 30, 2005.

During the year ended April 30, 2005 the Fund loaned securities to certain brokers. At April 30, 2005, the value of securities on loan and the value of collateral amounted to $259,023,366 and $265,688,293, respectively.

At April 30, 2005, the Fund had the following open interest rate swap agreements:


			Cash Flows	Cash Flows
	Notional		Paid	Received	Unrealized
Expiration	Amount	Counterparty	by the Fund	by the Fund	Gain

7/02/2006	$150,000,000	Merrill Lynch	Fixed - 1.95%	Floating-2.87%	$3,083,390
		& Co., Inc.
11/26/2006	105,000,000	Merrill Lynch	Fixed - 2.79%	Floating-2.85%	1,596,336
		& Co., Inc.
7/02/2008	100,000,000	JPMorgan	Fixed - 2.737%	Floating-2.87%	3,430,374
		Chase & Co.
11/26/2008	65,000,000	Merrill Lynch	Fixed - 3.585%	Floating-2.85%	1,058,120
		& Co., Inc.

On April 30, 2005, the aggregate cost of securities for federal income tax purposes was $1,684,981,958. The gross unrealized appreciation and depreciation on securities based on tax cost was $461,669,432 and $460,933,754, respectively, with a net unrealized appreciation of $735,678.

NOTES TO FINANCIAL STATEMENTS continued

5. AUCTION MARKET PREFERRED SHARES

The Fund has issued 19,600 shares of Auction Market Preferred Shares ("Preferred Shares") consisting of six series, each with a liquidation value of $25,000 plus accumulated but unpaid dividends (whether or not earned or declared). Dividends on each series of Preferred Shares are cumulative at a rate, which is reset based on the result of an auction. The annualized dividend rate was 2.05% during the year ended April 30, 2005. The Fund will not declare, pay or set apart for payment any dividend to its common shareholders unless the Fund has declared and paid or contemporaneously declares and pays full cumulative dividends on each series of Preferred Shares through its most recent dividend payment date.

Each series of Preferred Shares is redeemable, in whole or in part, at the option of the Fund on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends (whether or not earned or declared). Each series of Preferred Shares is also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends (whether or not earned or declared) if the requirement relating to the asset coverage with respect to the outstanding Preferred Shares would be less than 200%.

The holders of Preferred Shares have voting rights equal to the holders of the Fund's common shares and will vote together with holders of common shares as a single class. Holders of Preferred Shares, voting as a separate class, are entitled to elect two of the Fund's Trustees.

6. DISTRIBUTIONS TO SHAREHOLDERS

As of April 30, 2005, the components of distributable earnings on a tax basis were as follows:


	Undistributed
	Long-term
Overdistributed	Capital	Unrealized
Ordinary Income	Gain	Appreciation

$ 847,808	$11,634,125	$ 735,678

The differences between the components of distributable earnings on a tax basis and the amounts reflected in the Statement of Assets and Liabilities are primarily due to wash sales, premium amortization adjustments and interest rate swap payments.

The tax character of distributions paid was as follows:


	Year EndedApril 30,

	2005	2004

Ordinary Income	$122,739,422	$114,879,208
Long-term Capital Gain	18,676,422	0

7. EXPENSE REDUCTIONS

Through expense offset arrangements with the Fund's custodian, a portion of fund expenses has been reduced.

NOTES TO FINANCIAL STATEMENTS continued

8. DEFERRED TRUSTEES' FEES

Each Trustee of the Fund may defer any or all compensation related to performance of their duties as Trustees. The Trustees' deferred balances are allocated to deferral accounts, which are included in the accrued expenses for the Fund. The investment performance of the deferral accounts are based on the investment performance of certain Evergreen funds. Any gains earned or losses incurred in the deferral accounts are reported in the Fund's Trustees' fees and expenses. At the election of the Trustees, the deferral account will be paid either in one lump sum or in quarterly installments for up to ten years.

9. CONCENTRATION OF RISK

The Fund may invest a substantial portion of its assets in an industry or sector and, therefore, may be more affected by changes in that industry or sector than would be a comparable mutual fund that is not heavily weighted in any industry or sector.

10. REGULATORY MATTERS AND LEGAL PROCEEDINGS

Since September 2003, governmental and self-regulatory authorities have instituted numerous ongoing investigations of various practices in the mutual fund industry, including investigations relating to revenue sharing, market-timing, late trading and record retention, among other things. The investigations cover investment advisors, distributors and transfer agents to mutual funds, as well as other firms. EIMC, EIS and Evergreen Service Company, LLC (collectively, "Evergreen") have received subpoenas and other requests for documents and testimony relating to these investigations, are endeavoring to comply with those requests, and are cooperating with the investigations. Evergreen is continuing its own internal review of policies, practices, procedures and personnel, and is taking remedial action where appropriate.

In connection with one of these investigations, on July 28, 2004, the staff of the Securities and Exchange Commission ("SEC") informed Evergreen that the staff intends to recommend to the SEC that it institute an enforcement action against Evergreen. The SEC staff's proposed allegations relate to (i) an arrangement pursuant to which a broker at one of EIMC's affiliated broker-dealers had been authorized, apparently by an EIMC officer (no longer with EIMC), to engage in short-term trading, on behalf of a client, in Evergreen Mid Cap Growth Fund (formerly Evergreen Emerging Growth Fund and prior to that, known as Evergreen Small Company Growth Fund) during the period from December 2000 through April 2003, in excess of the limitations set forth in the fund's prospectus, (ii) short-term trading from September 2001 through January 2003, by a former Evergreen portfolio manager, of Evergreen Precious Metals Fund, a fund he managed at the time, (iii) the sufficiency of systems for monitoring exchanges and enforcing exchange limitations as stated in the fund's prospectuses, and (iv) the adequacy of e-mail retention practices. In connection with the activity in Evergreen Mid Cap Growth Fund, EIMC reimbursed the fund $378,905, plus an additional $25,242, representing what EIMC calculated at that time to be the client's net gain and the fees earned by EIMC and the expenses incurred by this fund on the client's account. In connection with the activity in Evergreen

NOTES TO FINANCIAL STATEMENTS continued

Precious Metals Fund, EIMC reimbursed the fund $70,878, plus an additional $3,075, representing what EIMC calculated at that time to be the portfolio manager's net gain and the fees earned by EIMC and expenses incurred by the fund on the portfolio manager's account. Evergreen is currently engaged in discussions with the staff of the SEC concerning its recommendation.

Any resolution of these matters with regulatory authorities may include, but not be limited to, sanctions, penalties or injunctions regarding Evergreen, restitution to mutual fund shareholders and/or other financial penalties and structural changes in the governance or management of Evergreen's mutual fund business. Any penalties or restitution will be paid by Evergreen and not by the Evergreen funds.

From time to time, EIMC is involved in various legal actions in the normal course of business. In EIMC's opinion, it is not involved in any legal actions that will have a material effect on its ability to provide services to the Fund.

Although Evergreen believes that neither the foregoing investigations nor any pending or threatened legal actions will have a material adverse impact on the Evergreen funds, there can be no assurance that these matters and any publicity surrounding or resulting from them will not result in reduced sales or increased redemptions of Evergreen fund shares, which could increase Evergreen fund transaction costs or operating expenses, or have other adverse consequences on the Evergreen funds.

11. SUBSEQUENT DISTRIBUTIONS

On April 18, 2005, the Fund declared distributions from net investment income of $0.13 per common share, payable on June 1, 2005 to shareholders of record on May 16, 2005.

On May 20, 2005, the Fund declared distributions from net investment income of $0.13 per common share, payable on July 1, 2005 to shareholders of record on June 15, 2005.

These distributions are not reflected in the accompanying financial statements.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Trustees and Shareholders
Evergreen Income Advantage Fund

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Evergreen Income Advantage Fund as of April 30, 2005, and the related statement of operations for the year then ended, statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the three-year period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2005 by correspondence with the custodian and brokers. As to securities purchased or sold but not yet received or delivered, we performed other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Evergreen Income Advantage Fund as of April 30, 2005, the results of its operations, changes in its net assets and financial highlights for each of the years or periods described above in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
June 17, 2005

AUTOMATIC DIVIDEND REINVESTMENT PLAN (unaudited)

All common shareholders are eligible to participate in the Automatic Dividend Reinvestment Plan ("the Plan"). Pursuant to the Plan, unless a common shareholder is ineligible or elects otherwise, all cash dividends and capital gains distributions are automatically reinvested by EquiServe Trust Company, N.A., as agent for shareholders in administering the Plan ("Plan Agent"), in additional common shares of the Fund. Whenever the Fund declares an ordinary income dividend or a capital gain dividend (collectively referred to as "dividends") payable either in shares or in cash, non-participants in the Plan will receive cash, and participants in the Plan will receive the equivalent in shares of common shares. The shares are acquired by the Plan Agent for the participant's account, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund ("newly issued common shares") or (ii) by purchase of outstanding common shares on the open market (open-market purchases) on the American Stock Exchange or elsewhere. If, on the payment date for any dividend or distribution, the net asset value per share of the common shares is equal to or less than the market price per common share plus estimated brokerage commissions ("market premium"), the Plan Agent will invest the amount of such dividend or distribution in newly issued shares on behalf of the participant. The number of newly issued common shares to be credited to the participant's account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price per share on the date of issuance may not exceed 5%. If on the dividend payment date the net asset value per share is greater than the market value or market premium ("market discount"), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participant in open-market purchases. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent's open-market purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43010, Providence, Rhode Island 02940-3010.

ADDITIONAL INFORMATION (unaudited)

FEDERAL TAX DISTRIBUTIONS

Pursuant to Section 852 of the Internal Revenue Code, the Fund has designated aggregate capital gain distributions of $18,676,422 for the fiscal year ended April 30, 2005.

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TRUSTEES AND OFFICERS

TRUSTEES¹


Charles A. Austin III		Principal occupations: Investment Counselor, Anchor Capital Advisors, Inc. (investment advice);
Trustee		Director, The Andover Companies (insurance); Trustee, Arthritis Foundation of New England;
DOB: 10/23/1934		Director, The Francis Ouimet Society; Former Director, Health Development Corp.
Term of office since: 1991		(fitness-wellness centers); Former Director, Mentor Income Fund, Inc.; Former Trustee,
		Mentor Funds and Cash Resource Trust; Former Investment Counselor, Appleton Partners, Inc.
Other directorships: None		(investment advice); Former Director, Executive Vice President and Treasurer, State Street
		Research & Management Company (investment advice)


Shirley L. Fulton		Principal occupations: Partner, Tin, Fulton, Greene & Owen, PLLC (law firm); Former Partner,
Trustee		Helms, Henderson & Fulton, P.A. (law firm); Retired Senior Resident Superior Court Judge,
DOB: 1/10/1952		26th Judicial District, Charlotte, NC
Term of office since: 2004
Other directorships: None


K. Dun Gifford		Principal occupations: Chairman and President, Oldways Preservation and Exchange Trust
Trustee		(education); Trustee, Treasurer and Chairman of the Finance Committee, Cambridge College;
DOB: 10/23/1938		Former Chairman of the Board, Director, and Executive Vice President, The London Harness
Term of office since: 1974		Company (leather goods purveyor); Former Director, Mentor Income Fund, Inc.; Former Trustee,
		Mentor Funds and Cash Resource Trust
Other directorships: None


Dr. Leroy Keith, Jr.		Principal occupations: Partner, Stonington Partners, Inc. (private equity firm); Trustee,
Trustee		The Phoenix Group of Mutual Funds; Director, Obagi Medical Products Co.; Director,
DOB: 2/14/1939		Diversapack Co.; Former Director, Lincoln Educational Services; Former Chairman of the Board
Term of office since: 1983		and Chief Executive Officer, Carson Products Company (manufacturing); Former Director,
		Mentor Income Fund, Inc.; Former Trustee, Mentor Funds and Cash Resource Trust
Other directorships: Trustee, The
Phoenix Group of Mutual Funds


Gerald M. McDonnell		Principal occupations: Manager of Commercial Operations, SMI Steel Co. – South Carolina
Trustee		(steel producer); Former Sales and Marketing Manager, Nucor Steel Company; Former Director,
DOB: 7/14/1939		Mentor Income Fund, Inc.; Former Trustee, Mentor Funds and Cash Resource Trust
Term of office since: 1988
Other directorships: None


William Walt Pettit		Principal occupations: Vice President, Kellam & Pettit, P.A. (law firm); Director, Superior
Trustee		Packaging Corp.; Director, National Kidney Foundation of North Carolina, Inc.; Former Director,
DOB: 8/26/1955		Mentor Income Fund, Inc.; Former Trustee, Mentor Funds and Cash Resource Trust
Term of office since: 1984
Other directorships: None


David M. Richardson		Principal occupations: President, Richardson, Runden LLC (executive recruitment business
Trustee		development/consulting company); Consultant, Kennedy Information, Inc. (executive
DOB: 9/19/1941		recruitment information and research company); Consultant, AESC (The Association of
Term of office since: 1982		Executive Search Consultants); Director, J&M Cumming Paper Co. (paper merchandising);
		Former Trustee, NDI Technologies, LLP (communications); Former Vice Chairman, DHR
Other directorships: None		International, Inc. (executive recruitment); Former Director, Mentor Income Fund, Inc.;
		Former Trustee, Mentor Funds and Cash Resource Trust


Dr. Russell A. Salton III		Principal occupations: President/CEO, AccessOne MedCard; Former Medical Director,
Trustee		Healthcare Resource Associates, Inc.; Former Medical Director, U.S. Health Care/Aetna Health
DOB: 6/2/1947		Services; Former Director, Mentor Income Fund, Inc.; Former Trustee, Mentor Funds and
Term of office since: 1984		Cash Resource Trust
Other directorships: None

TRUSTEES AND OFFICERS continued


Michael S. Scofield		Principal occupations: Director, Branded Media Corporation (multi-media branding company);
Trustee		Attorney, Law Offices of Michael S. Scofield; Former Director, Mentor Income Fund, Inc.;
DOB: 2/20/1943		Former Trustee, Mentor Funds and Cash Resource Trust
Term of office since: 1984
Other directorships: None


Richard J. Shima		Principal occupations: Independent Consultant; Director, Trust Company of CT; Trustee,
Trustee		Saint Joseph College (CT); Director, Hartford Hospital; Trustee, Greater Hartford YMCA;
DOB: 8/11/1939		Former Director, Enhance Financial Services, Inc.; Former Director, Old State House Association;
Term of office since: 1993		Former Director of CTG Resources, Inc. (natural gas); Former Director, Mentor Income Fund, Inc.;
Former Trustee, Mentor Funds and Cash Resource Trust
Other directorships: None


Richard K. Wagoner, CFA ²		Principal occupations: Member and Former President, North Carolina Securities Traders
Trustee		Association; Member, Financial Analysts Society; Former Consultant to the Boards of Trustees
DOB: 12/12/1937		of the Evergreen funds; Former Trustee, Mentor Funds and Cash Resource Trust
Term of office since: 1999
Other directorships: None



OFFICERS

Dennis H. Ferro ³		Principal occupations: President and Chief Executive Officer, Evergreen Investment Company,
President		Inc. and Executive Vice President, Wachovia Bank, N.A.; former Chief Investment Officer,
DOB: 6/20/1945		Evergreen Investment Company, Inc.
Term of office since: 2003


Carol Kosel ⁴		Principal occupations: Senior Vice President, Evergreen Investment Services, Inc.
Treasurer
DOB: 12/25/1963
Term of office since: 1999


Michael H. Koonce ⁴		Principal occupations: Senior Vice President and General Counsel, Evergreen Investment
Secretary		Services, Inc.; Senior Vice President and Assistant General Counsel, Wachovia Corporation
DOB: 4/20/1960
Term of office since: 2000


James Angelos ⁴		Principal occupations: Chief Compliance Officer and Senior Vice President, Evergreen Funds;
Chief Compliance Officer		Former Director of Compliance, Evergreen Investment Services, Inc.
DOB: 9/2/1947
Term of office since: 2004

¹The Board of Trustees is classified into three classes of which one class is elected annually. Each Trustee serves a three year term

concurrent with the class from which the Trustee is elected. Each Trustee oversees 89 Evergreen funds. Correspondence for each

Trustee may be sent to Evergreen Board of Trustees, P.O. Box 20083, Charlotte, NC 28202.

²Mr. Wagoner is an "interested person" of the Fund because of his ownership of shares in Wachovia Corporation, the parent to the

Fund's investment advisor.

³The address of the Officer is 401 S. Tryon Street, 20th Floor, Charlotte, NC 28288.

⁴The address of the Officer is 200 Berkeley Street, Boston, MA 02116.

Additional information about the Fund's Board of Trustees and Officers can be found in the Statement of Additional Information (SAI) and is available upon request without charge by calling 800.343.2898.

568264 rv2 6/2005

Item 2 - Code of Ethics

(a) The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer and principal financial officer.

(b) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in 2.(a) above.

(c) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in 2.(a) above.

Item 3 - Audit Committee Financial Expert

Charles A. Austin III and K. Dun Gifford have been determined by the Registrant's Board of Trustees to be audit committee financial experts within the meaning of Section 407 of the Sarbanes-Oxley Act. These financial experts are independent of management.

Items 4 – Principal Accountant Fees and Services

The following table represents fees for professional audit services rendered by KPMG LLP, for the audit of the Registrant's annual financial statements for the fiscal years ended April 30, 2005 and April 30, 2004, and fees billed for other services rendered by KPMG LLP.

	2005	2004
Audit fees	$25,000	$24,000
Audit-related fees (1)	13,000	12,250

Audit and audit-related fees	38,000	36,250
Tax fees (2)	3,375	1,850
All other fees	0	0

Total fees	$41,375	$38,100

(1) Audit-related fees consists principally of fees for interfund lending procedures and any merger related activity. (2) Tax fees consists of fees for tax consultation, tax compliance and tax review.

Evergreen Funds
Evergreen Income Advantage Fund
Evergreen Managed Income Fund

Audit and Non-Audit Services Pre-Approval Policy

I. Statement of Principles

Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Board of Trustees/Directors is responsible for the appointment, compensation and oversight of the work of the independent auditor. As part of this responsibility, the Audit Committee is required to pre-approve the audit and non-audit services performed by the independent auditor in order to assure that they do not impair the auditor’s independence from the Funds. To implement these provisions of the Act, the Securities and Exchange Commission (the “SEC”) has issued rules specifying the types of services that an independent auditor may not provide to its audit client, as well as the audit committee’s administration of the engagement of the independent auditor. Accordingly, the Audit Committee has adopted, and the Board of

Trustees/Directors has ratified, the Audit and Non-Audit Services Pre Approval Policy (the “Policy”), which sets forth the procedures and the conditions pursuant to which services proposed to be performed by the independent auditor may be pre-approved.

The SEC’s rules establish two different approaches to pre-approving services, which the SEC considers to be equally valid. Proposed services either: may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”); or require the specific pre-approval of the Audit Committee (“specified pre-approval”). The Audit Committee believes that the combination of these two approaches in this Policy will result in an effective and efficient procedure to pre-approve services performed by the independent auditor. As set forth in this Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee if it is to be provided by the independent auditor. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Audit Committee.

For both types of pre-approval, the Audit Committee will consider whether such services are consistent with the SEC’s rules on auditor independence. The Audit Committee will also consider whether the independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds’ business people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Funds’ ability to manage or control risk or improve audit quality. All such factors will be considered as a whole, and no one factor should necessarily be determinative.

The Audit Committee is also mindful of the relationship between fees for audit and non-audit services in deciding whether to pre-approve any such services and may determine, for each fiscal year, the ratio between the total amount of fees for Audit, Audit-related and Tax services and the total amount of fees for certain permissible non-audit services classified as All Other services.

The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services that have the general pre-approval of the Audit Committee. The term of any general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee considers a different period and states otherwise. The Audit Committee will annually review and pre-approve the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee. The Audit Committee will add or subtract to the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of this Policy is to set forth the procedures by which the Audit Committee intends to fulfill its responsibilities. It does not delegate the Audit Committee’s responsibilities to pre-approve services performed by the independent auditor to management.

The independent auditor has reviewed this Policy and believes that implementation of the policy will not adversely affect the auditor’s independence.

II. Delegation

As provided in the Act and the SEC’s rules, the Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions of the Audit Committee at its next scheduled meeting.

III. Audit Services

The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations

relating to the audit. Audit services also include the attestation engagement for the independent auditor’s report on management’s report on internal controls for financial reporting. The Audit Committee will monitor the Audit services engagement as necessary, but no less than on a quarterly basis, and will also approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Fund service providers or other items.

In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant general pre-approval to other Audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with mergers or acquisitions.

The Audit Committee has pre-approved the Audit services in Appendix A. All other audit services not listed in Appendix A must be specifically pre-approved by the Audit Committee.

IV. Audit-related Services

Audit –related services are assurance and related services that are reasonably related to the performance of the audit or review of the Funds’ financial statements or that are traditionally performed by the independent auditor. Because the Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor and is consistent with SEC’s rules on auditor independence, the Audit Committee may grant general pre-approval to Audit-related services. Audit-related services include, among others, due diligence services pertaining to potential business acquisitions/dispositions; accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures related to accounting records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements.

The Audit Committee has pre-approved the Audit-related services in Appendix B. All other Audit-related services not listed in appendix B must be specifically pre-approved by the Audit Committee.

V. Tax Services

The Audit Committee believes that the independent auditor can provide Tax services to the Funds such as tax compliance, tax planning and tax advice without impairing the auditor’s independence, and the SEC has stated that the independent auditor may provide such services. Hence, the Audit Committee believes it may grant general pre-approval to those Tax services that have historically been provided by the auditor, that the Audit Committee has reviewed and believes would not impair the independence of the auditor, and that are consistent with the SEC’s rules on auditor independence. The Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Director of Fund Administration, the Vice President of Tax Services or outside counsel to determine that the tax planning and reporting positions are consistent with this policy.

Pursuant to the preceding paragraph, the Audit Committee has pre-approved the Tax services in Appendix C. All Tax services involving large and complex transactions not listed in Appendix C must be specifically pre-approved by the Audit Committee, including: tax services proposed to be provide by the independent auditor to any executive officer or director of the Funds, in his or her individual capacity, where such services are paid for by the Funds or the investment advisor.

VI. All Other Services

The Audit Committee believes, based on the SEC’s rules prohibiting the independent auditor from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the

Audit Committee believes it may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence.

The Audit Committee has pre-approved the All Other services in appendix D. Permissible All Other services not listed in Appendix D must be specifically pre-approved by the Audit Committee.

A list of the SEC’s prohibited non-audit services is attached to this policy as Exhibit 1. The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these services and the applicability of exceptions to certain of the prohibitions.

VII. Pre-Approval Fee Levels or Budgeted Amounts

Pre-approval fee levels or budgeted amounts for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee is mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services. For each fiscal year, the Audit Committee may determine to ratio between the total amount of fees for Audit, Audit-related and Tax services, and the total amount of fees for services classified as All Other services.

VIII. Procedures

All requests or applications for services to be provided by the independent auditor that do not require specific approval by the Audit Committee will be submitted to the Director of Fund Administration or Assistant Director of Fund Administration and must include a detailed description of the services to be rendered. The Director/Assistant Director of Fund Administration will determine whether such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed on a quarterly basis (or more frequent if requested by the audit committee) of any such services rendered by the independent auditor.

Request or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Director/Assistant Director of Fund Administration, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

The Audit Committee has designated the Chief Compliance Officer to monitor the performance of all services provided by the independent auditor and to determine whether such services are in compliance with this policy. The Chief Compliance Officer will report to the Audit Committee on a periodic basis on the results of its monitoring. Both the Chief Compliance Officer and management will immediately report to the chairman of the Audit Committee any breach of this policy that comes to the attention of the Chief Compliance Officer or any member of management.

The Audit Committee will also review the internal auditor’s annual internal audit plan to determine that the plan provides for the monitoring of the independent auditor’s services.

IX. Additional Requirements

The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the independent auditor and to assure the auditor’s independence from the Funds, such as reviewing a formal written statement from the independent auditor delineating all relationships between the independent auditor and the Funds, the Funds’ investment advisor and related parties of the investment advisor, consistent with Independence Standards Board Standard No. 1, and discussing with the independent auditor its methods and procedures for ensuring independence.

Items 5 – Audit Committee of Listed Registrants

If applicable, not applicable at this time. Applicable for annual reports covering periods ending on or after the compliance date for the listing standards applicable to the particular issuer. Listed issuers must be in compliance with the new listing rules by the earlier of the registrant’s first annual shareholders meeting after January 15, 2004 or October 31, 2004.

Item 6 – [Reserved]

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

If applicable, not applicable at this time. Applicable for annual reports filed on or after July 1, 2003.

Item 8 – [Reserved]

Item 9 - Controls and Procedures

(a) The Registrant's Principal Executive Officer and Principal Financial Officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) There were no significant changes in the Registrant's internal controls or other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Item 10 - Exhibits

File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

(a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.

(b)(1) Separate certifications for the Registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as EX99.CERT.

(b)(2) Separate certifications for the Registrant's principal executive officer and principal financial officer, as required by Section 1350 of Title 18 of United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached as EX99.906CERT. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Evergreen Income Advantage Fund

By:
_______________________
Dennis H. Ferro,

Principal Executive Officer
Date: June 30, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:
_______________________
Dennis H. Ferro,
Principal Executive Officer
Date: June 30, 2005

By:
________________________
Carol A. Kosel
Principal Financial Officer
Date: June 30, 2005