60 is not the only thing greater than 59. For example, 61 is. And since you are adding 8 it is more likely you will get from 56 to 64.
I am adding 8s, but taking off 60 will keep the timing in check. If I reset every 60, the timer could be anywhere up to 8 seconds off. Makes sense to me.
Eg:
Seconds = 56,
then the timer overflows, seconds now = 64. Seconds - 60 = 4. Now if I went to 0 on that, what happened to the extra 4 seconds the timer counted??
My point is that after adding 1 to the number of minutes, surely you need to subtract 60 from the number of seconds? Not 59?
True, thanks for correcting me on that. Guess I got messed up on timing in my head 
. Wasnt exactly having a great day when I wrote it 
So the circuit you posted is not the one you are using?
Everything is the exact circuit I am using, but I put the load caps in for my board design, just in case I needed some load caps on the crystal. They are merely placeholders. Sorry for the confusion this might have caused.