I won actual prizes not money....and they had me fill out a W-9. Do I need to claim this on my taxes and how?

[cluck2004]

I did receive the gifts but never received any other paperwork from them.

[Opus 17 · Accepted solution]

Yes.  If the amount is over $600 they are supposed to issue a 1099-MISC.  

The amount you report as income is the fair market value of the prize.  This may not be the amount listed on the 1099-MISC, but that's ok (although the IRS may send a letter asking for an explanation later.)

For example, if you won a sofa with a "list price" of $2000 but the store always has it "on sale" for $1199, then $1199 is the value of the prize.

If you report a value different than the list price and different than on the 1099-MISC (if you get one), you should keep proof of how you determined that the value was different.  Don't send it with your tax return, but keep it in your files in case you are asked.

[Opus 17]

Update:

If you disagree with the prize value reported on the 1099-MISC, the IRS asks that you attach a copy of the 1099-MISC and a written statement to your tax return, and mail the return instead of e-filing.  The written statement should have a concise explanation of why you are reporting a different value, but don't include other proofs.  If the IRS has questions later, or if they lose your attached statement, they will send a letter and then you would send them proof (such as, copies of web pages, store ads, or catalog prices showing that the item's fair market value is less than reported on the 1099-MISC.)

If you want to e-file, report the lower value but expect to get an inquiry letter in a few months.