Step 1: Work the whole expression out in decimals instead of fractions.
We need the standard values $\tan 45^\circ = 1$ and $\cos 60^\circ = 0.5$.
Step 2: Compute each squared term as a decimal.
\[ \tan^2 45^\circ = (1)^2 = 1 \]
\[ \cos^2 60^\circ = (0.5)^2 = 0.25 \]
Step 3: Substitute into the expression and simplify in decimal form.
\[ \frac{1}{2}\tan^2 45^\circ - \cos^2 60^\circ = \frac{1}{2}(1) - 0.25 = 0.5 - 0.25 = 0.25 \]
Step 4: Convert the decimal answer back to a fraction to match the answer choices.
\[ 0.25 = \frac{25}{100} = \frac{1}{4} \]
Final Answer:
The value of the expression is $\frac{1}{4}$, which matches Option (C).
\[ \boxed{\dfrac{1}{4}} \]