Q. So, if I generally receive a refund, I should still receive one next year even if I do not opt out. Is that right?
A. Simple answer: Yes.
But taxes aren't simple. The Child Tax Credit (CTC) increased from $2000 to $3000 ($3600 for children under 6). So if you get half that $3000 in advance; that means you'll get $1500 next year when you file your tax return. So, the simple answer is your refund will be $500 less next year. That assumes you got the full $2000 the previous year. Another change for 2021 is that the CTC is fully refundable. That is, not everybody got the full $2000 in the past. They will get the full $3000 for 2021 (unless their income is very very high), half in advance payments and half a tax filing time.
