The only free option is to get the 2016 forms from the IRS and file by hand.
No. You cannot use the current online software to prepare a 2016 return. Online preparation and e-filing for 2016 is permanently closed. You have to download 2016 software and then print, sign and mail your return.
To file a return for a prior tax year
Only a 2017 return can be prepared online and e-filed.
If you need to prepare a return for 2014, 2015, or 2016 you can purchase and download desktop software to do it, then print, sign, and mail the return(s)
https://turbotax.intuit.com/personal-taxes/past-years-products/
(if you want to prepare on paper for free: )
PRIOR YEAR FORMS FROM IRS
2016
Form 1040 https://www.irs.gov/pub/irs-prior/f1040--2016.pdf
Form 1040 Instructions https://www.irs.gov/pub/irs-prior/i1040gi--2016.pdf
Form 1040A https://www.irs.gov/pub/irs-pdf/f1040a.pdf
Form 1040AInstructions https://www.irs.gov/pub/irs-prior/i1040a--2016.pdf
Form1040EZ https://www.irs.gov/pub/irs-prior/f1040ez--2015.pdf
Form1040EZ Instructions https://www.irs.gov/pub/irs-pdf/i1040ez.pdf
https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment
Remember to prepare your state return as well—if you live in a state that has a state income tax.
When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s. Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS received the return.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
