You can’t refer to an alias outside of SELECT and ORDER BY because of the way a query is parsed. Typical workaround is to bury it in a derived table:
SELECT
FirstName, LastName, Other,
Flag = CASE WHEN Other IS NOT NULL THEN 1 ELSE 0 END
FROM
(
SELECT FirstName, LastName,
CASE WHEN LastName="Jones"
THEN 'N/A'
END AS Other
FROM dbo.table_name
) AS x;