Yes, your baby can be considered your dependent. You can claim your child as a dependent on your 2016 tax return. A child born during the year and that passes away during the year is deemed to have lived in your home for the entire year.
In the Personal Info section of the program when entering the child as a dependent you would indicate that the child passed away during the year and the date of passing. However, in order to e-file and claim your baby as a dependent on your tax return you will need to have a social security number for your baby