You are correct. The payments you receive are an advance of the Child Tax Credit that you would normally get when you file your 2021 tax return. Because these credits are paid in advance, every dollar you receive will reduce the amount of Child Tax Credit you will claim on your 2021 tax return. This means that by accepting advance child tax credit payments, the amount of your refund may be reduced or the amount of tax you owe may increase.
As long as you meet the criteria and income thresholds then your taxes should reconcile fine. If by chance your income does increase (fingers crossed for super big raise this year), then you might owe a little back. See more about reconciling the tax credit with your tax return here.
Also, just in case you do receive that big raise. The IRS gives you ability to manage payments at their portal.
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